Suggestions for the trustee

El Corton

August 6, 2009

My first suggestion is for the U.S. Trustee. Two words: William Mustard.

Now, for the Chapter 11 trustee:

Sell the mobility business to Franklin Covey for the value of one year of royalty payments on FC Tasks.

Move to avoid all post-petition payments to Kevin McBride, and as many pre-petition payments as you have authority over. If he objects, subpoena every document he has regarding his relationship with SCO. In fact, do that anyway. He can't invoke attorney-client privilege. You are the client.

Also move to avoid all post-petition payments to Mesirow and Stephen Norris.

Negotiate a monetary settlement with AutoZone for its admitted breach of the Open Server license agreement, and dismiss the rest of your case. You should be able to get something on the order $100 K. Nothing to AutoZone, but a lot to SCO.

Now you will have a decent pile of cash.

Settle the IBM and Red Hat cases by signing a declaration that the allegations made by the former management against them, and against other Linux developers and users, were baseless. Such declaration to be binding on SCO and its successors. Also waive attorney-client privilege with respect to that litigation, and direct all SCO's counsel to turn over their records. If the Tenth Circuit remands any part of the Novell case, settle with Novell on the same terms.

Now you've disposed of all unliquidated claims against the estate, except the case in India which I don't know much about.

Starting from there, you might have the nucleus of a small business that could putter along for quite a few years, until the legacy UNIX-on-x86 market dies completely. It may never be profitable, but the employees will benefit and you will have done your job.

4:43:23 PM

Source: Investor Village SCO Board [ ]

Copyright 2009