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SUSE's Reply, Cahn's Objection to Motion to Compel, and MORs, MORs, MORs

By Pamela Jones et al.

Lots of bankruptcy filings, including a reply by SUSE in support of its motion for relief from the automatic stay and Chapter 11 Trustee Edward Cahn has filed an Objection to Al Petrofsky's motion to compel him to comply with reporting requirements. And Ocean Park Advisors has filed an Amended Exhibit A. But that isn't the big news. The big news is that SCO has filed its Monthly Operating Reports, or MORs, for July through September, 2009. But interestingly, they are filed with a disclaimer that they are filed "consistent with the format and allocations of liabilities as previously adopted by the Debtors," because Mr. Cahn and his financial advisors simply have not yet had time to "review all of the historical information previously reported by the Debtors", so Cahn reserves the right to amend them once he has done a more thorough review.

"Historically," the disclaimer continues, "the Company may not have distinguished between direct liabilities of debtor and non-debtor companies." That would be the foreign subsidiaries, I expect, like Japan and Germany. "The Trustee with its financial advisors is conducting a thorough analysis of the intercompany arrangement among the debtors and the non-debtor subsidiaries and reserves the right to modify these MORs upon completion of its review." It cautions the reader not to rely on the information, as they are filing just to fulfill reporting requirements. I would take it that SCO may have more in the way of assets than is reported here, then. September says $1,287,030. And we will have to wait for the real MORs.

Full post as published by Groklaw on December 24, 2009 (boomark / email).