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SCO Bankruptcy: the Very Merry MORs of May

By Pamela Jones et al.

SCO filed its monthly operating reports for May. They had the Yarro loan, so these were still relatively flush days. If you are like me, you are deep into the transcripts from the trial, or you are analyzing Mozilla's draft MPL license, or both, so it's hard to focus on this. But the MORs are filed, so those of you who are more accounting-oriented will want to take a look.

As I look quickly through them, it looks like at the end of May, SCO could have paid back the Yarro loan in full. I realize they had just got it in March, and that that wasn't the goal in May. And this is July, not May. They took the loan to be able to keep the litigation going. And going. And going.

Guess how much they've spent in professional fees since this bankruptcy started? $5,097,729 plus $321,753 in expenses, not counting May or bills outstanding. So, the Chapter 11 bankruptcy has pretty much wiped out what they had when they started it, all to lawyers and other professionals helping them. Helping them do what? No wonder they keep postponing meeting with the bankruptcy judge lately. And no wonder they can't pay any creditors. Anyone notice this Chapter 11 thingie doesn't seem to be pointing toward success?

Full post as published by Groklaw on July 21, 2010 (boomark / email).