Just unreal...
SCO Has a Bid; Would Like More - Updated
Tuesday, October 23 2007 @ 05:21 PM EDT
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SCO has filed a Motion to Approve Emergency Motion of the Debtors for An Order (A) Approving Asset Purchase Agreement, (B) Establishing Sale and Bidding Procedures, and (C) Approving the Form and Manner of Notice of Sale [PDF]. It asks the court to let it happen. There are more filings, which I'll put up here shortly, but I was pretty sure you'd want to know about this one immediately.
SCO wants to sell off certain of its Unix assets, namely "certain related claims in litigation, as well as certain transfer, cross-license and related agreements pertaining to the Hipcheck product line and Me Inc. Mobile intellectual property." They say York Capital Management wishes to buy them. Or, more precisely, the Purchaser is "a newly formed entity affiliated with one or more funds managed by JGD Management Corp. d/b/a York Capital Managment".
I guess this plan sounds better to SCO than paying Novell and going into Chapter 7. Here's the APA [PDF]. I seriously wonder how SCO can get the court to agree to sell off its assets, when it owes already more than it can pay, according to the likely Utah court's view, on a hope and a dream about SCOsource. But hey, nothing in this case is normal. And I'm not so sure about some of the players, either.
Among the excluded assets are "Seller's litigation with Novell and IBM, and its claims and choses in action other than the Linux Litigation." The total purchase price, SCO says, consisting of cash and non-cash components is "in the estimated aggregate amount of up to $36,000,000". SCO has to reimburse up to $50,000 of York's fees and expenses in connection with the deal. And if York is designated as "stalking horse" under the Bid Procedure Order, and if others outbid York, SCO has to pay them a $780,000 breakup fee and reimbursement of all expenses incurred by York up to $300,000. Hey, big spender.
So, you tell me: which of them is most nuts? They want to have an auction on who wants to sue AutoZone and resurrect SCOsource? Hey, folks. The line starts here. Don't push.
And here are all of today's filings: