U.S. Trustee Moves to Convert SCO Bankruptcy to Chapter 7

“So what’s left? Dismissal or, more logically, Chapter 7. SCO’s
been in Chapter 11 as long as it’s supposed to be, and it’s tried
three times to figure out a “rehabilitation” plan, and nothing
panned out.

“Meanwhile, SCO reports a net negative cash flow of more than
$3.5 million in its March 2009 report. $3.5 million since the
bankruptcy was first filed in September 2007, and that represents
cause to switch to Chapter 7, the Trustee’s Office argues, due to
“substantial or continuing loss to or diminution of the estate and
the absence of a reasonable likelihood of rehabilitation.” That’s
$3.5 million that could have been paid to Novell.

“I never expected SCO to be rehabilitated. Oh. Different
definition. The Trustee’s Office means “to put back in good
condition; re-establish on a sound, firm basis.” I mean to admit it
was wrong, turn around and sin no more. Like *that* will ever
happen.

“It’s conceivable SCO could come into court with a done deal, I
suppose, with all their paperwork done and in order, as a counter.
With SCO, I never say never. I’d want to see the real buyers in the
flesh, though, if I were the judge, with their right hands on their
heart and their left holding their wallets up before the judge,
spilling over with dollars, so to speak.

“Um. Real ones.”

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