SCO books: assets = 100% post-petition liabilities + 17% pre + $0/sh.

Al Petrofsky

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May 5, 2010, 2:44:44 PM5/5/10

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Below is a table with some combined numbers from the balance sheets on
Forms MOR-3 in the Monthly Operating Reports filed in In re: SCO
Group, Inc. (f/k/a Caldera International, Inc), et al.,
No. 07-bk-11337, Bankr. D. Del.. (For a link to a docket listing with
links to copies of everything that has been filed with the court, see
<http://scofacts.org/bankruptcy.html>.)

Month TotAsset (PostLia) Po% Tot-Post (PreLia) Pre% Equity Shares Eq/sh
2007-09 $17,061k ($7,470k) 100% $9,591k ($3,792k) 100% $5,798k 21,783k $0.27
2007-12 $16,541k ($5,477k) 100% $11,063k ($4,637k) 100% $6,426k 21,783k $0.30
2008-03 $14,333k ($5,793k) 100% $8,540k ($5,465k) 100% $3,074k 21,899k $0.14
2008-06 $11,754k ($5,395k) 100% $6,359k ($5,145k) 100% $1,213k 21,899k $0.06
2008-09 $11,483k ($5,337k) 100% $6,145k ($8,621k) 71% ($2,475k) 21,899k $0.00
2008-12 $9,856k ($4,537k) 100% $5,319k ($8,228k) 65% ($2,909k) 21,899k $0.00
2009-03 $9,115k ($4,840k) 100% $4,274k ($8,196k) 52% ($3,921k) 21,899k $0.00
2009-06 $8,577k ($4,908k) 100% $3,668k ($8,196k) 45% ($4,527k) 21,899k $0.00
2009-09 $7,513k ($4,964k) 100% $2,549k ($8,683k) 29% ($6,134k) 21,899k $0.00
2009-12 $7,257k ($4,735k) 100% $2,521k ($8,072k) 31% ($5,551k) 21,899k $0.00
2010-03 $7,554k ($6,167k) 100% $1,387k ($8,073k) 17% ($6,685k) 21,899k $0.00

Legend (quoted terms are the verbatim names of line items on the
MOR-3; in all instances the values for both debtors have been added
together; the values are as of the end of the listed month):

TotAsset = "TOTAL ASSETS"
PostLia = "TOTAL POST PETITION LIABILITIES"
("LIABILITIES NOT SUBJECT TO COMPROMISE")
Po% = min(TotAsset / PostLia, 100%)
Tot-Post = TotAsset - PostLia
PreLia = "TOTAL PRE-PETITION LIABILITIES"
("LIABILITIES SUBJECT TO COMPROMISE")
Pre% = max(min(Tot-Post / PreLia, 100%), 0%)
Equity = "NET OWNER EQUITY" = TotAsset - PostLia - PreLia
Shares = "Capital Stock" divided by the par value of $0.001/share
Eq/sh = max(Equity / Shares, 0%)

Here are docket numbers and links for the reports used in the above
table (which only includes figures from every third month's reports):

Nick Andrew

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May 5, 2010, 11:47:21 PM5/5/10

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Al Petrofsky <a...@petrofsky.org> writes:

>Below is a table with some combined numbers from the balance sheets on
>Forms MOR-3 in the Monthly Operating Reports filed in In re: SCO
>Group, Inc. (f/k/a Caldera International, Inc), et al.,
>No. 07-bk-11337, Bankr. D. Del.. (For a link to a docket listing with
>links to copies of everything that has been filed with the court, see
><http://scofacts.org/bankruptcy.html>.)

>Month TotAsset (PostLia) Po% Tot-Post (PreLia) Pre% Equity Shares Eq/sh
>2007-09 $17,061k ($7,470k) 100% $9,591k ($3,792k) 100% $5,798k 21,783k $0.27
>2007-12 $16,541k ($5,477k) 100% $11,063k ($4,637k) 100% $6,426k 21,783k $0.30
>2008-03 $14,333k ($5,793k) 100% $8,540k ($5,465k) 100% $3,074k 21,899k $0.14
>2008-06 $11,754k ($5,395k) 100% $6,359k ($5,145k) 100% $1,213k 21,899k $0.06
>2008-09 $11,483k ($5,337k) 100% $6,145k ($8,621k) 71% ($2,475k) 21,899k $0.00
>2008-12 $9,856k ($4,537k) 100% $5,319k ($8,228k) 65% ($2,909k) 21,899k $0.00
>2009-03 $9,115k ($4,840k) 100% $4,274k ($8,196k) 52% ($3,921k) 21,899k $0.00
>2009-06 $8,577k ($4,908k) 100% $3,668k ($8,196k) 45% ($4,527k) 21,899k $0.00
>2009-09 $7,513k ($4,964k) 100% $2,549k ($8,683k) 29% ($6,134k) 21,899k $0.00
>2009-12 $7,257k ($4,735k) 100% $2,521k ($8,072k) 31% ($5,551k) 21,899k $0.00
>2010-03 $7,554k ($6,167k) 100% $1,387k ($8,073k) 17% ($6,685k) 21,899k $0.00

Blame Judge Gross for letting this farce run on at least a couple of years
longer than he should have! Who ignored the BK deadline for reorganising
from Ch.11 ? Who kept the SUSE arbitration stayed despite the deep impact
that may have on any reorganisation, despite the likelihood that the Swiss
will cancel it, which means it would have to be restarted from Step 1 ?

The situation is even worse now, because SCO is now in the hole for some
of Ralph Yarro's SNCP money, and when they default on the loan, Ralph has
first-in-line access to their assets.

Nick.
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Bruce

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May 8, 2010, 9:26:38 PM5/8/10

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On May 5, 1:44 pm, Al Petrofsky <a...@petrofsky.org> wrote:
> Below is a table with some combined numbers from the balance sheets on
> Forms MOR-3 in the Monthly Operating Reports filed in In re: SCO
> Group, Inc. (f/k/a Caldera International, Inc), et al.,
> No. 07-bk-11337, Bankr. D. Del.. (For a link to a docket listing with
> links to copies of everything that has been filed with the court, see
> <http://scofacts.org/bankruptcy.html>.)
>
> Month TotAsset (PostLia) Po% Tot-Post (PreLia) Pre% Equity Shares Eq/sh
> 2007-09 $17,061k ($7,470k) 100% $9,591k ($3,792k) 100% $5,798k 21,783k $0.27
> 2007-12 $16,541k ($5,477k) 100% $11,063k ($4,637k) 100% $6,426k 21,783k $0.30
> 2008-03 $14,333k ($5,793k) 100% $8,540k ($5,465k) 100% $3,074k 21,899k $0.14
> 2008-06 $11,754k ($5,395k) 100% $6,359k ($5,145k) 100% $1,213k 21,899k $0.06
> 2008-09 $11,483k ($5,337k) 100% $6,145k ($8,621k) 71% ($2,475k) 21,899k $0.00
> 2008-12 $9,856k ($4,537k) 100% $5,319k ($8,228k) 65% ($2,909k) 21,899k $0.00
> 2009-03 $9,115k ($4,840k) 100% $4,274k ($8,196k) 52% ($3,921k) 21,899k $0.00
> 2009-06 $8,577k ($4,908k) 100% $3,668k ($8,196k) 45% ($4,527k) 21,899k $0.00
> 2009-09 $7,513k ($4,964k) 100% $2,549k ($8,683k) 29% ($6,134k) 21,899k $0.00
> 2009-12 $7,257k ($4,735k) 100% $2,521k ($8,072k) 31% ($5,551k) 21,899k $0.00
> 2010-03 $7,554k ($6,167k) 100% $1,387k ($8,073k) 17% ($6,685k) 21,899k $0.00

While these are the numbers that have been filed, there are some
glaring discrepancies in the filings.

1. The Total Assets column includes $2,043K for Goodwill that should
have been written off years ago.

2. The Total Assets includes $1,182K in Intercompany Receivables from
SCO Group, but the balance sheet of SCO Group (Docket 1118) shows only
$749K in total assets. It is an accounting trick for SCO Operations
and the line entry for assets is $433K too high.

These items would make a slightly more realistic line entry for the
above table to be:

2010-03 $5,078k ($6,167k) 82% ($1,089k) ($8,073k) 0% ($9,161k)
21,899k $0.00

The noticeable thing here is that for the first time Total Assets is
less than Post Petition Liabilities.

However, the whole thing may boil down to "so what". As long as cash
is greater than zero, they can plod along consuming other peoples
money.

-- Bruce

cs

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May 12, 2010, 10:45:52 AM5/12/10

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>
> The situation is even worse now, because SCO is now in the hole for some
> of Ralph Yarro's SNCP money, and when they default on the loan, Ralph has
> first-in-line access to their assets.
>
> Nick.

Question:
Will the converted money count as an asset?
IIRC, there is a final judgement on that money, and even if there's not
much left, i would have thought that this would even go ahead of Yarro's
loan, as this is actually based on a court judgement, and not just a
later contractual agreement drawn up by the administrator?

Help me straighten the question mark here.

Chris.

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Nick Andrew

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May 16, 2010, 7:47:30 PM5/16/10

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cs <n...@pix.bz> writes:

>>
>> The situation is even worse now, because SCO is now in the hole for some
>> of Ralph Yarro's SNCP money, and when they default on the loan, Ralph has
>> first-in-line access to their assets.
>>
>> Nick.

>Question:
>Will the converted money count as an asset?

No it doesn't, as that's money owned by Novell, but if SCO spends it,
then the situation I forsee is whatever cash is left goes to Novell,
and assuming that cash is less than the amount owed, Novell _doesn't_
have any claim upon non-cash assets. So Yarro ends up with the plant
and IP assets.

Nick.

cs

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May 20, 2010, 5:09:44 AM5/20/10

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So, at the time being, SCO having about $400K in own cash plus the Yarro
money of $2M, making it about $2.5M.

Novells judgement was for a total of about $3.5M.

This should mean that, if i read you right, everything would go to
Novell, and Yarros's "supersenior loan", even if defaulted, would still
have to take place first spot in the queue behind Novell in order to be
paid, and Novell would have a first go at anything assets in lieu of
monies owed (either assets or money from sold assets), and only then, if
there is anything left, Yarro would be let in to have a rummage around
what little is left, mostly paperwork?

Am i correct?

If this is the case, I don't know what Yarro was thinking, as he must
have known that this was one of the most likely outcomes.

... unless, there are dirty secrets in the paperwork that needs to be
kept out of the view of authorities, secrets that's worth $2M+, because
it can't be IP, as this is mostly gone now, after Darl bought out more
or less the lot.

Harold Stevens

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May 20, 2010, 7:51:55 AM5/20/10

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In <ht2u7v$1cq2$1...@adenine.netfront.net> cs:

[Snip...]

> dirty secrets in the paperwork that needs to be kept out of the view

In nearly a decade watching this stock-kiting scam, I've seen nothing from
'mericun authorities giving me any assurance any of them give a hoot. That
is not to say it's in any way legitimate or legal. It's simply the classic
twobit shell game ignored by functionaries "regulating" this cesspool.

My fave Ralphie theory: that viper's too selfish to see his "winnings" are
actually little more than deckchairs on the Titanic at this point.

This message brought to you by the letters V(al) and K(reidel).

http://heraldextra.com/news/article_8f325158-50ea-54d2-b17c-6412e42c3ebd.html

JMO; YMMV...

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