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Judge Gross Wakes Up: Order Re July 27th Hearing

Jul 22, 2009, 19:03 (0 Talkback[s])
(Other stories by Pamela Jones)


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"I think, myself, that these two paragraphs in Novell's filing must have caught the judge's attention also, because it is, not matter how nicely put, a criticism of what happened at the last hearing:

"8. Over the objections of IBM and Novell, the Court agreed to consider the PSA in connection with the Conversion Motions. The Court reached this result based upon its findingthat the Debtors were proceeding in good faith, a conclusion it reached in reliance on the Debtors' representations and some testimony from the Debtors. Given the lateness of the hour and the moving parties' clear disadvantage in trying to deal with the PSA on essentially no notice at all, the Court and parties adjourned the Conversion Motions to be heard with a motion by the Debtors for approval of the PSA on a schedule the parties were to agree upon. The parties thereafter agreed that the Debtors would file the sale motion by June 22, with oppositions due by July 20 after discovery, and a joint hearing on the sale motion and Conversion Motions on July 27.

"9. In fact, the Debtors did not file the Third Sale Motion until late at night on June 22. (Dkt. 815.) Furthermore, they still did not attach the schedules or exhibits. Most of those came only on June 23rd even though the Debtors had represented to the Court on June 15 that the schedules and exhibits were ready, only awaiting completion of copying. (Dkt. 819.)3 Finally, a key exhibit, Exhibit A listing the executory contracts to be assumed and assigned (an exhibit that, like the others, supposedly was ready to go and final on June 15) was not filed until July 10, 18 days after the agreed-upon deadline and 25 days after the June 15 hearing, when the Debtors represented to this Court unequivocally that it was complete except for copying."

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