[Discuss] SCO Group (TSG) Now Officially in Chapter 7, with Cahn Still at the Helm

[gaf at blu.org (Jerry Feldman)]

http://www.groklaw.net/article.php?story=20120824173947931
Wednesday, August 29 2012 @ 05:39 PM EDT

It's a done deal. SCO is now officially transferred from Chapter 11 to 
Chapter 7 bankruptcy protection. Here's the order [PDF]. The Chapter 11 
trustee, Edward Cahn, was to turn over all the records and assets to the 
interim Chapter 7 trustee as soon as the US Trustee appoints him or her, 
and file with the court within 14 days a list of all unpaid debts 
incurred after the Chapter 11 bankruptcy began and within 30 days a 
final report. Of course, as he requested, he is now appointed [PDF] as 
the Chapter 7 interim trustee. He just changes hats.

So what does that mean? Chapter 11 is where you are going to try to 
reorganize the business and save it, paying creditors whatever you can. 
Chapter 7 is where you have come to bury the company once and for all. 
But first you sell off any assets, which at the moment would be the 
litigation prospects. I wonder who might be interested in buying that?

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Basically, I don't think the judge should have ever let them file 
chapter 11 in the first place. Novell and other filed motions to make 
them Chapter 7 when they first filed.

-- 
Jerry Feldman <gaf at blu.org>
Boston Linux and Unix
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