SCO's bankruptcy hearing wonders where the wonga's gone

NOVELL ASKED the Delaware Federal Bankruptcy Court to send Linux litigation company SCO back to Utah District Court for trial in SCO v. Novell over how much it owes to Novell.

The hearing addressed several matters before the bankruptcy court, but not SCO's request to sell substantially all of its assets. Arguments about that will be heard on November 16.

First up was SCO's Motion To Enforce The Automatic Stay, relating to its Swiss arbitration over United Linux. This was considered along with SUSE's Objection to same. SCO's motion was granted, and SUSE's denied, so the parties were ordered that the arbitration is stayed.

Next in line was Novell's Motion to Compel the Debtors to Remit Undisputed Future SVRX Royalties to Novell Upon Receipt. SCO told the court that it is presently up to date on its undisputed royalty payments to Novell. Therefore, the judge denied Novell's motion to force SCO to pay it immediately in the future. He told Novell that it can file an emergency motion later, if SCO falls behind.

SCO's Application to Employ Boies, Schiller & Flexnor LLP as special litigation counsel, to which the US Trustee has objected, was postponed until SCO's next bankruptcy hearing.

Then came the main event, as it happened. That was Novell's Motion for Relief From Stay to Proceed With District Court Action to (i) Apportion Revenue From SCOSource Licenses and (ii) Determine SCO's Authority to Enter Into SCOSource Licenses, Etc.

The judge asked a few questions and the lawyers for Novell and SCO argued their positions. Novell said that Judge Kimball in Utah is well versed in the case and that a trial there won't take longer than a few days. SCO said that it won't hurt Novell to wait a few more months and the money from the Microsoft and Sun SCOSource licences is already spent anyway.

Judge Kevin Gross took the matter under advisement, but said he wouldn't take very long to rule. Observers reporting to Groklaw felt Novell won its motion, but that is yet to be known.

But it's looking like SCO will face Novell in a Utah courtroom, and sooner rather than later. µ

L'INQ
Groklaw