LONG SUFFERING Novell has finally heard just about all it will take from SCO, apparently.

In a filing in US Bankruptcy Court in Delaware on Wednesday, Novell objected to SCO's motion to reimburse York Capital Management (York) for its expenses in making a failed bid to buy substantially all of SCO's few remaining business assets. Virtually all of SCO's other creditors objected to SCO's motion, too, but Novell's objection is worthy of note for its directness and tone of utter disdain.

Novell writes of SCO's request: "Last Winter, the Debtors [that's SCO] asked for just such relief for [York] in connection with their 'emergency' motion to approve bidding procedures for a proposed sale of substantially all of their assets to York, but they withdrew the request because they never did reach any kind of sale agreement with York. No matter, it seems, for now the Debtors seek an expense reimbursement for York anyhow."

The informal tone of that last sentence and the use of "anyhow" should tip one off that this isn't going to be your usual sort of formally worded, carefully well mannered and lawyerly legal filing.

Indeed, Novell's gloves come off immediately, as its introduction continues:

"This request is a vintage performance by the Debtors in these cases, except that this time they seek to make an outright gift of the estates' assets rather than approval of just another really bad deal they have chased in ceaseless pursuit of their dreams of a litigation bonanza against Novell and others."

The rest of Novell's filing relates the sad and sorry history of SCO's proposed but ultimately aborted sale of most of its assets to York and details the grounds and substance of Novell's objection to the bankruptcy court permitting SCO to pay York so much as a dime in reimbursement.

It disposes of SCO's suggestion that it has a "moral obligation" to pay off York by observing that the York deal would have essentially gained it something for nothing. Novell writes, "'Heads I win, tails you lose' does not pass muster in courts of equity such as this Court."

Novell then presents its technical arguments that there is no legal basis for the court to permit SCO to reimburse York.

Then Novell summarises its objection with barely disguised, mocking ridicule:

"The Motion clearly fails to meet the standards for approval of a breakup fee or a... sale. There has been no benefit to the Debtors' estates. York's participation in the process did not attract any other bidders; indeed, it did not result in a sale to anyone, including York. In fact, it did not even result in a signed contract between York and the Debtors. In fact, to the contrary, all that happened is that the Debtors spent money needlessly on a proceeding that was, to all intents and purposes, stillborn had it not been for the the stubbornness of the Debtors' management and the avarice of York."

The conclusion is coldly scathing, too: "For the reasons explained above, the Court should deny the Motion as the Debtors' worst and least supported idea yet in these cases."

Ouch. As they say, that's gotta leave a mark. µ.

L'Inq
Groklaw (pdf)