Novell's Motion to Lift Stay, as text(Groklaw)

Just wait until Judge Gross figures out that SCO first filed the law suit against Novell and it was only after all hope of gaining anything by that law suit failed did SCO decide to file for bankruptcy (in order to avoid the counter charges). Not to mention that SCO is using Novell's money to pay its lawyers.

You can say all you want about why a bankruptcy court might decide this or that. But, many reasons do not get mentioned in decisions.

Novell did reserve its right to claim SCO filed bankruptcy in bad faith. And guess what the judge is going to be thinking when he gets up to speed in all of this. Did I mention the IBM case or the Red Hat case?

This case is not your typical situation where business is bad or turns bad and somehow the debtor needs some time and help from the bankruptcy court. This is simply SCO hiding from its liabilities by jumping into the bankruptcy. Liabilities which it created all by itself as a direct result of its illegal business plan. This is not a business gone bad. Rather it is an extortion and theft plan that failed. Was it their only choice? Oh, hell no. They were deep into a growing marketplace with a partnership (UnitedLinux) that actually had some promise. You know, the one they claim is causing their downfall. But, they were in that growing business.

I would not want to be SCO once Judge Gross figures out that SCO put themselves into bankruptcy as a shield against all of the counter claims that naturally result from their conversion, extortion and falsely based legal actions. All of which are the result of bad legal advice. Bad legal advice paid for with converted monies.

As for lifting the stay itself, I think the most significant factor is that the Novell trial was ready to go. Judicial efficiency dictates that it be allowed to finish. Judge Gross knows that he can still decide whether or not Novell gets any kind of preferential treatment. That will remain on his plate.

And I think that if only SCO were to pay the price, Judge Gross might be inclined to disqualify SCO's petition for bankruptcy. But, there are more parties to be taken into account. All of the known creditors so far have an interest. And I am sure the judge expects more from IBM. So until he gets a firm handle on just what is going down he is going to be cautious. But, he no doubt already suspects this one is going Chapter 7 if it remains in court.