Novell
objected vigorously to SCO's
Motion for PostPetition Financing, the proposed Ralph Yarro "loan" to SCO which also involves granting "security interests and superpriority administrative expense status", and now there's a second objection, from Al Petrofsky. This will not surprise us. What would surprise us would be the court granting the motion. To give you a taste of the flavor of this filing, here's the first paragraph of the introduction:
2. The trustee, carrying on the tradition of the debtors-in-possession before him, has submitted another half-baked proposal to obtain funding from a non-existent counterparty. Should this party soon come into existence and execute the agreement, but never produce a dime of funds, the trustee wishes to provide it with a parting gift of up to $50,000.
I can't defend the proposed loan terms, but I think Mr. Petrofsky has overstated them. I read the contract as saying that if the deal doesn't, for listed reasons, happen, then SCO has to pay Yarro's legal fees associated with trying to set up the loan, up to $50,000, with any unpaid expenses over that to come from litigation winnings, if any. That isn't really the same as saying SCO wants to provide Yarro with a parting gift. And when you overstate in a court of law, you greatly increase your odds of losing, because you may lead the judge to defend the very entity you hoped he would not rule for by making it seem your complaints are over the top. I also think the objection wasn't timely filed.
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