I'm sure this was expected. Novell opposes SCO's Trustee's
Motion for PostPetition Financing to essentially have Ralph Yarro and unnamed others provide SCO a loan to keep the corpse breathing long enough to make it through trial, I suppose, and I expect we may see more oppositions filed:
02/26/2010 - 1065 - Objection Novell's Opposition to the Trustee's Motion for PostPetition Financing (related document(s) 1051 ) Filed by Novell, Inc., SUSE Linux GmbH (Greecher, Sean) (Entered: 02/26/2010)
We're working on a chart, showing the new plan compared to the York plan that was not accepted earlier. We should have it by later tonight or early tomorrow, and I'll comment more fully then. Meanwhile, I know you want to read the latest.
Update: Are they kidding with this plan? They are putting all SCO's hopes on the litigation, with the loan apparently to fund SCO until it can get there, but look at the results:
9. The real beneficiaries of the risk are the holders of the Debtors' equity, including Mr. Yarro, who Novell believes is a major shareholder. Both the Debtors and now the Trustee have been willing to risk the creditors' recovery essentially for the benefit of equity. If the litigation thrives, equity stands to profit. If the case miscarries (or even enjoys only limited success), however, equity largely is no worse off than it was before the chapter 11 cases were filed.
Look at footnote 5, where Novell explains just one aspect of the proposal:
5 For sake of example, if the Debtors were to win the $5 billion judgment from IBM that they have demanded, and if SNCP actually lent $2 million to the Debtors, SNCP's Loan Fee would be $330 million for making this $2 million loan. Even assuming a judgment against IBM much more consonant with the boundaries of possibility, let alone reality, say, $50 million, SNCP would get, in addition to its interest, a "loan fee" of $3 million for its $2 million loan, plus all fees and expenses of SNCP (with any fees and expenses in excess of $50,000 further diluting the Litigation Proceeds).
Loan up to $2 million, get back $330 million? Are they kidding? Who *are* these people that they even dare to make such an offer in public?
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