Judge Gross Wakes Up: Order Re July 27th Hearing

“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.”

Complete
Story