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Wayne Gray's Motion to Lift Stay is Denied. And How.

By Pamela Jones et al.

Wayne Gray's motion to lift the stay [PDF]in the SCO bankruptcy has been denied. If you are new, here's the report from the hearing about it, and for details on the dispute here's more. Gray is not entitled to the relief he seeks, Judge Kevin Gross has ruled:

Wayne R. Gray ("Mr. Gray" or "Movant") has moved to lift the automatic stay pursuant to 11 U.S.C. $ 362(d) (the "Motion"), in Movant's words, to "permit the Debtor" to participate in pending litigation' and an appeal. The basic problem with the Motion is that the Chapter 11 Trustee does not wish to participate and Mr. Gray lacks standing to compel his participation. Mr. Gray's effort is confounding to the Court because he invested considerable time and money in an obviously ill-founded, losing effort. The Court is willing to give Mr. Gray the benefit of the doubt that he filed and proceeded with the Motion in the good faith belief that he is entitled to the relief. The Court is nevertheless fully satisfied that Mr. Gray is completely wrong.

Not everyone is as nice as Judge Gross. But I admire his willingness to look for the best in everyone. But for sure that is the right question: why would he spend so much money and effort on something bound to fail? And even if he wanted to, why would his lawyers? Did they not tell him it was a losing effort? Here's the order:

11/25/2009 - 973 - Memorandum Order (related document(s) 942 ) Order Signed on 11/25/2009. (TAS) (Entered: 11/25/2009)

Full post as published by Groklaw on November 25, 2009 (boomark / email).