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Novell's Statement Re Mesirow's Bill, as text, and SCO Responds

By Pamela Jones et al.

SCO's lawyers read Novell's Statement Regarding First Monthly Fee Application of Mesirow Financial Consultants [PDF] and said, "uh oh." They have now responded with a filing of their own, saying that "in an abundance of caution" they talked matters over with Novell, and since Novell said in the Statement that it didn't object to interim payment, they have filed a Certification of No Objection (No Order Required) [PDF] (love the parenthetical emphasis). Mesirow will only take 80 percent of its fee now, SCO says, and all the expenses it billed for, and they'll hash it all out later.

Well. Very thrifty. But it's still $359,910.64 in fees and $48,702.11 in expenses, mostly for a deal that never had a ghost of a chance of happening in the real world.

We have the Statement by Novell as text now, thanks to Groklaw's E-man, which will, I think, give you insight into SCO's latest move. Novell expressed its concerns that the Mesirow bill takes such a hefty chunk out of the estate, and it is concerned in general that money is pouring out to advisors and lawyers and yet there has been little or no progress. One of SCO's law firms, Berger Singerman, has already, according to footnote 3, requested more than a half million dollars in fees and expenses just through November, and if you add that with the Mesirow bill, the requested fees and expenses well exceed $1 million already since SCO filed for bankruptcy. What troubles Novell as a significant creditor is that SCO seems no closer to a plan of reorganization. And here comes Dorsey & Whitney, another SCO law firm, filing its second monthly bill [PDF]. At this rate, will SCO even make it to the Utah trial, now set for April? Even if it does, will there be anything left for Novell? Probably not, so Novell is staking its claim now, letting everyone know that it reserves its right to go after some of this money gushing out in such abundance to SCO's advisors. What is complicating everything is that the trial in Utah hasn't happened yet.

Full post as published by Groklaw on January 13, 2008 (boomark / email).