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SCO Files a Ch. 11 Plan, a Disclosure Statement, and Wants to Pay York's Expenses

By Pamela Jones et al.

SCO has now filed its Chapter 11 Plan of Reorganization [PDF], along with a Disclosure Statement [PDF]. The hearing is set for April 2. Also they have filed a Motion for Authority to Pay an Expense Reimbursement to York Capital Management [PDF]. SCO seems to be having a ball distributing all the money they can prior to the Utah trial in April. They are so bold. That's what makes them so fun to watch.

Here's why SCO wants to pay York. They have a *moral* duty, they feel. Did you ever expect 'SCO' and 'moral' to show up in the same sentence? I confess I did not. I think we can now say that we've seen everything:

4. SCO believes that as a business and moral matter SCO should make the $50,000 payment to York under the Term Sheet (which it did finalize) or the $150,000 payment to York under the terms of the Asset Purchase Agreement (which was virtually completed at the time SCO and York abandoned the transaction.

Don't you love it? Wait. Don't the executives have to do what's best for the everlovin' shareholders? And I thought York only got paid if the deal actually happened. Say, speaking of asset purchase agreements, Novell probably feels SCO has a business and moral obligation -- nay, a legal duty, forsooth -- to pay Novell for license fees SCO agreed to pay under an earlier APA that was actually signed in a deal that was actually finalized in all particulars.

Full post as published by Groklaw on March 01, 2008 (boomark / email).