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US Trustee Objects to SCO's Proposed Payment to York

By Pamela Jones et al.

The US Trustee, through her counsel Joseph McMahon, has now filed an Objection to SCO's motion to pay off ... I mean to pay York, despite the deal never having been consummated. Here's one reason why:

Here, this Court rejected the hasty process that the Debtors and York were seeking in favor of a process that benefitted all constituencies. Subsequent to this Court's ruling regarding the process timetable, York walked out on the Debtors. This Court should not authorize the Debtors to make any payments to York, as York's lack of commitment to a fair process is not consonant with the estates' interests.

I believe that is the polite way of putting it. See how you can express yourself perfectly clearly while remaining calm and polite? Effective too. The Objection also points out that when you are in bankruptcy, you can't do things any old which way. And one thing you can't do is act like you are not bankrupt and pay people outside of the rules. IBM has also filed an Objection, as has Novell [PDF].

There is a bill from Pachulski Stang also and an affidavit of mailing regarding the R & D Strategic Solutions' assignment of its claim to Argo Partners.

Full post as published by Groklaw on April 15, 2008 (boomark / email).