IBM Makes an Appearance... Represented by One of the Main Authors of the Bankruptcy Code - Bert Young Leaves; Nasdaq News(Groklaw)

I have some friends that have suggested that IBM never will show up at the SCO bankruptcy. And there is some justification for saying so. The chances that IBM can recover some damages rendered by SCO are remote indeed. First, SCO may have to pay Novell their money. But, if Novell does not get a priority feed at the bankruptcy (and that may happen) then there might be something for IBM. Actually, as I recall IBM was listed as one of the creditors. Some old bills no doubt.

Right now IBM is just following the turnip truck.

Now if IBM spots any juicy melons on that truck you might see some action. But, until then they just want some of their best bankruptcy people kept informed.

Keep in mind that IBM may be interested in bidding on some of the furniture or other assets if the case goes Chapter 7. Frankly, I do not see how they can avoid it. Even if Novell is able to trace down some of their money, that will mean those poor third parties will be left unpaid and have to enter the bankruptcy court as creditors. So if Novell gets a $25 million or so, SCO is as good as gone. And IBM following the truck is going to assure that is the case.

Do not expect IBM to spend a whole lot of extra money in lawyers fees just to frustrate the bankruptcy. But, if it turns out that IBM does want to bid on some of the marbles they might as well submit a claim too and get some funny money to bid with. And do not expect IBM and Novell to bid against each other. Most likely they will agree not to bid each other up. Even if they are dealing with funny money. It will be “you bid on the desk and we will bid on the chairs”. Or, maybe IBM does not want any of the marbles. Novell will take back the APA stuff.