In Chapter 7, any hopes of the company continuing are gone. It's being wound up. The trustee acts to realise the maximum cash for the BK court to distribute to the claimants. The trustee is in total control and that includes being privy to confidences with external lawyers, accountants, banks. Effectively, he is and was their client, except he's got a totally different agenda to the one SCO had.
The trustee has to be looking at the past history of the company, the lawsuits and the question of the concealment or misappropriation of assets. The fees paid to BS&F will bear investigation, and BS&F would have no right to keep details of any dealings with SCO from him. There can be lapses of memory and lost records, but that's a dangerous game indeed. If it can be shown that any party received funds knowing them to have been wrongfully witheld from Novell, they could be forced to return them.
I'd say Novell were doing the right thing in pushing SCO into bankruptcy now it's been established that no copyrights were transferred. I think Novell stands a better chance of tracing the conversion with SCO in Chapter 7 in the control of the trustee, rather than with them continuing as a business.
It's been obvious for a long time that SCO was going to end up bankrupt. I've no idea why SCO applied for Chapter 11 when they did. It gives them some respite from their creditors. Maybe they think that it helps give the impression of being a proper business which has found itself in difficult circumstances rather than a scam played out until it was run to ground. It might look better in court one day.
~ Merkey v The Internet et al Docs ~ Yahoeuvre ~ tuxrocks.com (SCO cases legal docs) ~ scofacts.org ~ eagle.petrofsky.org ~ Zen's Den ~ Yahoo SCOX Message Board ~ Lamlaw ~ Microsoft Watch ~ Groklaw ~ Korgwal - a Groklaw mirror ~ nosoftwarepatents.com ~ Flame Warriors ~ SCOXE Wars ~ Get your Merkey Number here! ~ Digital Law Online
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