First Reports From the SCO Bankruptcy Hearing - Updated 6Xs - To the End of the Day(Groklaw)

First I would like to thank those individuals who have taken the time to attend the hearing. It is one thing to be paid $500 an hour to endure these types of events. It is another to use up your own dime and time to do so.

I also look forward for the more detailed reports which are sure to surface as a little more time is available. They should be quite informative.

Just how Judge Gross will rule is unclear as it usually is. However, there are some simple concepts to keep in mind. If the current buyer is serious in buying any of the SCO assets they would certainly stick around for a competitive bidding process. And that is true even though the former purchasers have said they have lost interest. This one is fresh and should be available for consideration if a trustee is appointed to replace the current SCO management. And that would be true under either Chapter 7 or 11. Also it is important to note the motion by the current trustee. The judge knows that SCO and even IBM and Novell are out to protect their own interests as they perceive them to be. But, the trustee is not. So it is very likely that the trustees motion to convert to Chapter 7 will be given great weight. And it does not hurt to have Novell and IBM riding along side. And, as already mentioned, any serious buyer now will be interested in bidding on the assets in the near future. If they are only interested in defrauding the court they will go away when the SCO management is shown the door. Or, maybe I should say the gutter.

So at this point my guess is that the current management will be replaced with an independent trustee. It is further likely that the case will be moved to Chapter 7 as well. It just does not appear that anyone could do anything that would allow the SCO cases to leave the bankruptcy court intact or even scaled down.

Heck, even the rights left over that might be attached to those appeals are salable. The price will not be much of course. But, they too can be sold.

And, Novell and IBM as well as Red Hat have funny money to deal with. More so Novell but even IBM and others do have an interest in buying some of the marbles to make this whole thing go away as it should. So I still consider it likely that Novell will end up with all of the APA rights/obligations including all of the pending litigation and appeals. That should be a natural. As for the other marbles it may not matter much who buys them. But, I can see even Red Hat having a small interest in buying out the SCO business interests, etc., (sans the APA stuff).

Of course the new trustee should one be appointed will be charged with splitting up the assets in such a way to maximum the bids at sale. And most importantly encourage any interested bidder in showing their good money. Not the fake money. Not the smoke and mirrors and things that dissolve overnight. But, real honest bids.