Novell wants more than $25 million from SCOX, stock price drops
September 25, 2006
Just a reminder. Ever since Microsoft and Sun bought licenses to something
from SCOX related to UNIX in 2003, Novell has been asking for details. Novell
owns the UNIX copyrights, and under the terms of SCOX's contract with Novell, it
should have been acting as Novell's agent. Through discovery in Novell vs.
SCOX, Novell has gotten to see those sale contracts.
Novell believes it has enough evidence to file a writ of replevin and force SCOX to return that money. SCOX has less than $10 million in cash and cash equivalents. The sales were for more than $25 million. A writ of replevin is an emergency procedure, for cases when it looks like the stolen goods or money will not be reclaimable unless the court acts immediately.
Bankruptcy procedures are for recovery of debts. You can't legally pay off a debt with a stolen good. IANAL! I believe that the writ of replevin effectly suspends bankruptcy proceedings until as many goods as possible are recovered.
The writ of replevin can also be delayed. If there is an attempted murder, the federal marshalls enforcing the writ would wait until the local police complete the crime scene investigation before they enter the area to begin auditing and recovering the money.
Crime scene investigations can also be delayed by something like a hostage crisis.
So Darl here is the path of maximum delay.
1. Delay the cases until they can be delayed no more.
2. File for bankruptcy.
3. Let Novell file the writ of replevin.
4. Try to kill Ralph in the offices with the financial records.
5. Take one of the BSF lawyers hostage.
Source: Investor Village SCO Board [ http://www.investorvillage.com/smbd.asp?mb=1911 ]