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bpechter writes "Linux Today reports SCO has terminated Darl McBride and linked to the SCO 8K SEC report. The report found also at the SCO site and states: 'the Company has eliminated the Chief Executive Officer and President positions and consequently terminated Darl McBride.'"

I Don't Believe in Imaginary Property writes "The judge overseeing the SCO Chapter 11 bankruptcy case has issued an order appointing a chapter 11 trustee to oversee SCO's operations. However, the judge's reasoning is far from clear. While the judge believes that SCO has 'abandoned rehabilitation' to bet its future on litigation, he doesn't think it appropriate to convert their case to Chapter 7 liquidation. So SCO's management hasn't been fired yet, but they're no longer fully in charge either. It's not clear why the bankruptcy judge opted for this solution, when even the US Trustee was pushing to fire SCO's management and convert the case to Chapter 7. In short, SCO is still only mostly dead, rather than all dead, and in desperate search of a miracle worker."

eldavojohn writes "SCO lost last year and began the bankruptcy filings a long time ago but PJ has some speculative bad news on what they retain through the bankruptcy proceedings. SCO proposes to sell a number of assets to an outfit called UnXis, which PJ characterizes this way: 'It starts to hint that this is more a renaming, taking in some new management who seem to have financial expertise, and SCO keeps skipping along as unXis, with the dangerous litigation spun off safely into a litigation troll.' In their filings SCO says they retain 'their litigation and related claims against International Business Machines Corporation, Novell, Inc., AutoZone Corporation, Red Hat and certain Linux users which are not material customers of UnXis (excluding certain large-scale users of Linux servers) that are claimed to have infringed against UNIX copyrights.' So that's still a possibility they could go after anyone who is a 'certain Linux user.' And what's even worse is that they'll retain a patent for running multiple Java applications on a single Java virtual machine. We may not be out of the SCO litigation woods yet."

clemenstimpler sends a link to Groklaw, which has been following the proceedings dealing with the conversion of SCO's bankruptcy to Chapter 7 (i.e., liquidating the company). SCO has announced a prospective buyer. "...SCO has suggested it has a buyer. That doesn't mean it will avoid Chapter 7 of course, nor does it mean that the bankruptcy court will OK the suggested sale. But it likely does mean more delay, which is what this is likely all about. SCO very much wants to wait until the appeals court rules in SCO v. Novell. ... Hearing set for July 16 with backup for July 27. SCO has already moved to make it July 27. combo hearing on convert and sale. Frankly, it would not totally amaze me if the three entities that filed motions to convert were to appeal this. If not, SCO got its desired delay."

We've discussed the supervolcano beneath Yellowstone a few times here (not going to blow, 2004; going to blow, 2008). Now scientists are pondering whether a large area of conductive material beneath Mt. St. Helens might contain enough magma that the area could be classed a supervolcano. The jury is still out on this one. Reader nhytefall sends us a New Scientist progress report. "Magma can be detected with a technique called magnetotellurics, which builds up a picture of what lies underground by measuring fluctuations in electric and magnetic fields at the surface. The fields fluctuate in response to electric currents traveling below the surface, induced by lightning storms and other phenomena. The currents are stronger when magma is present, since it is a better conductor than solid rock. ... [M]easurements revealed a column of conductive material that extends downward from the volcano. About 15 km below the surface, the relatively narrow column appears to connect to a much bigger zone of conductive material. This larger zone was first identified in the 1980s by another magnetotelluric survey, and was found to extend all the way to beneath Mount Rainier 70 km to the north-east, and Mount Adams 50 km to the east. It was thought to be a zone of wet sediment, water being a good electrical conductor. ... [Some researchers] now think the conductive material is more likely to be a semi-molten mixture. Its conductivity is not high enough for it to be pure magma.. so it is more likely to be a mixture of solid and molten rock."

Several readers including Pop69 inform us that the US Trustee's office has asked to convert SCO's Chapter 11 bankruptcy to Chapter 7 — a.k.a. liquidation. Groklaw has the text of the filing: "...not only is there no reasonable chance of 'rehabilitation' in these cases, the Debtors have tried — and failed — to liquidate their business in chapter 11."

Xenographic writes "SCO has finally lost to Novell, now that Judge Kimball has entered final judgment against SCO. Of course, this is SCO we're talking about. There's still the litigation in bankruptcy court, which allowed this case to resume so that they could figure out just how much SCO owes, which is $3,506,526, if I calculated the interest properly, $625,486.90 of which will go into a constructive trust. And then there's the possibility that SCO could seek to have the judgment overturned in the appeals courts, or even the Supreme Court when that fails. Of course, they need money to do that and they don't really have much of that any more. Remember how Enderle, O'Gara and company told us that SCO was sure to win? I wonder how many people have emailed them to say, 'I told you so.'"

An anonymous reader writes "You have already heard the news that the SCO Group's US$5 billion threat against Linux is effectively finished. It was the Web site Groklaw.net that broke the news and posted the complete 102-page ruling; after that, it was picked up by mainstream media and trade press. In fact, it's Groklaw that has covered every aspect of SCO's legal fights with Linux vendors IBM , Novell and Red Hat and Linux users Daimler Chrysler and AutoZone ever since paralegal Pamela Jones started the site as a hobby in 2003. This feature does a great job of chronicling Groklaws' hand in the demise of SCO's case."

I Don't Believe in Imaginary Property writes "With SCO in Chapter 11 bankruptcy and there being little to read other than status reports and the boring financial details of how the company is wasting its last few dollars, one could be excused for thinking the SCO lawsuits had lost their zip. But things just got a bit more interesting. Jonathan Lee Riches has asked the court to take over. Yes, the man also known as inmate #40948-018 is now bringing his legal experience to the table, having previously filed pro se lawsuits against such entities as Michael Vick, Michael Jordan, Mickey Mantle, the Lincoln Memorial, the Thirteen Tribes of Israel, 'Various Buddhist Monks,' Mein Kampf, Denny's, George W. Bush, the Soviet Gulag Archipelago, Bellevue Hospital, Iran's Evin Prison, Auschwitz, and Plato. In his hand-written pro se motion (PDF), he asks to intervene as Plaintiff pursuant to FRCP 24(a)(2). As best anyone can read the motion, it appears that he offered Novell some 'royalty payments' and they refused them, so he wants to protect his UnixWare rights. He also claims to have proof of SCO's claims, but he wants take over part of the case via FRCP 24 because SCO isn't competent, and allegedly he could do a better job. To be fair, between him and Darl, it's something of a toss-up."

eldavojohn writes "Here's a short update on the Novell Vs. SCO case we've been following. Our good friend Darl McBride made some interesting comments in court yesterday. He stated (under oath): 'Many Linux contributors were originally UNIX developers... We have evidence System V is in Linux... When you go to the bookstore and look in the UNIX section, there's books on "How to Program UNIX" but when you go to the Linux section and look for "How to Program Linux" you're not gonna find it, because it doesn't exist. Linux is a copy of UNIX, there is no difference [between them]." This flies directly in the face of what SCO found in extensive investigations in 2002 and contradicts what SCO Senior Vice President Chris Sontag had just finished testifying earlier that day (testimony that McBride did not hear)."

UnknowingFool writes "Everyone's favorite CEO Darl McBride took the stand on Wednesday April 30 in Novell v. SCO. Chris Brown has posted his account on Groklaw of the 2nd day of trial. The first day's account can be found here. To refresh your memory in this ongoing case, Judge Kimball has already ruled that Novell owns the copyrights to Unix and has practically dismissed all of SCO's claims. This portion of the trial is about Novell's counterclaims that SCO never paid them the money from the Sun and MS deals. What is to be determined in this trial is how much of the money from the deals were for Unix licensing (SVRx) and how much were for SCO's server technology (Unixware)." (Read on for the rest, below.)

I Don't Believe in Imaginary Property writes "The day many have been waiting for has finally arrived, the day SCO gets torn apart in court by Novell. Each side gets 10 hours, and Novell managed to get them to agree to a stipulation (PDF) that should make things go a lot faster. With any luck, we will soon have an official ruling that SCO does not own much of anything and then we just have to wait for SCO to exhaust its appeals. This would've been over a long time ago, but SCO filed for bankruptcy on the eve of trial, stopping the clock. One can only wonder what trick they will try to pull this time."

I Don't Believe in Imaginary Property writes "Unsurprisingly, all of SCO's creditors have objected to the plan to reimburse York for the failed 'emergency' deal. Novell's tiny seven page objection (PDF) is hilarious and very readable. They don't hold back at all, saying that '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 stubbornness of the Debtors' management and the avarice of York,' and that it was 'another really bad deal they have chased in ceaseless pursuit of their dreams of a litigation bonanza.' They top it off by concluding with the line, 'for the reasons explained above, the Court should deny the Motion as the Debtors' worst and least supported idea yet in these cases.' One can only wonder how SCO will respond to this."

I Don't Believe in Imaginary Property writes "It seems that SCO is never without a trick up its sleeve. In the new '$100 million' reorganization plan, $5 million of which is cash and $95 million credit, one of the creditors is protesting because SCO is hiding the Definitive Documents until there's no time to object. In their own words, 'The debtors are proposing to file the Disclosure Statement 33 days before the hearing, in compliance with the requirement that it be filed at least 25 days before the hearing (F. R. Bankr. P. 3017). However, it is clear that this Disclosure Statement will be inadequate for evaluating the Plan, because it will not include any of the Definitive Documents. The Debtors are proposing to file the Definitive Documents separately, and to do so a mere five business days before the hearing, which is zero days before objections are due.'"

JoGiles writes "Linux-watch is reporting that while The SCO Group may go on to pursue its plans with a $100 million buyout, it will do so without its longtime CEO Darl McBride. Buried in the proposed MOU (Memorandum of Understanding) between Unix vendor and Linux litigator SCO and SNCP (Stephen Norris & Co. Capital Partners) is the note that "upon the effective date of the Proposed Plan of Reorganization, the existing CEO of the Company, Darl McBride, will resign immediately.""

AmIAnAi writes "Just when you thought it was all over, the SCO story takes a new twist. SCO has received $100 million financing from Stephen Norris Capital Partners to get them out of Chapter 11 and go private 'The move gives Stephen Norris, whose namesake founder was a co-founder of private equity giant The Carlyle Group, a controlling interest in SCO, which now has a platform to continue its court battle with Novell Inc. over royalties from the Unix server operating system, SCO's main business ... According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.'"

dacarr writes "SCO has filed their 10K with the SEC — and according to this, their own assessment of the company's outlook is pretty grim. As usual, PJ of Groklaw has a good synopsis of the filing highlights. In short, it boils down to one thing: unless there's a miracle, even SCO doesn't think they're going to come out of this. 'As a result of the Chapter 11 filings, realization of assets and liquidation of liabilities are subject to uncertainty. While operating as debtors-in-possession under the protection of Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated financial statements, in the ordinary course of business, or, if outside the ordinary course of business, subject to Bankruptcy Court approval. In addition, under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, post-petition liabilities and prepetition liabilities must be satisfied in full before stockholders are entitled to receive any distribution or retain any property under a plan of reorganization.'"

BobB-nw writes with word that this April will be the trial date for SCO's financial reckoning. Novell will discover via the courts how much (if anything) SCO is going to be compelled to pay in compensation for the lengthy trial over Unix code rights. The NetworkWorld piece also offers an overview of the case. "In September, The Wall Street Journal described the ruling against SCO as 'a boon to the open source software movement.' But experts say Unix is filled with technology that carries copyrights tied to many different companies and that it would be a nightmare to open source the Unix code collectively. Instead, Novell would have to pick and choose pieces to open-source, a process that could begin once the trial has ended."

An anonymous reader writes "This somewhat amusing press release of sorts tells us one of those things we've all been waiting a while for. SCO(X) has announced that 'it received a Nasdaq Staff Determination letter on December 21, 2007 indicating that as a result of having filed for protection under Chapter 11 of the U.S. Bankruptcy Code, the Nasdaq Listing Qualifications Panel has determined to delist the company's securities from the Nasdaq Stock Market and will suspend trading of the securities effective at the open of business on Thursday, December 27, 2007.' PJ at Groklaw has surmised that with effectively zero cash resources left, Novell doesn't stand to get much more than SCO's furniture, if even that. Ding dong, is the wicked witch finally dead yet?"

An anonymous reader writes "According to Fortune's legal blogger Roger Parloff, "once in awhile a judicial ruling comes down that's so wrong at such a basic level that you're just left scratching your head". He claims that Judge Kimball's "102-page ruling (about SCO) was greeted with widespread rejoicing and I-told-you-so's", but "the problem is not that Judge Kimball's view of the facts is wrong". Was the ruling unfair?"