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SCO Gets Leases OKd Despite Novell Objection: "SCO's Spending $$ by the Boatful - There'll Be Nothing Left"

By Pamela Jones et al.

The hearing on Novell's objection to the leases was today, and Groklaw had two observers there. The outcome was that SCO's leases were approved.

Novell no longer objected to the Utah lease, because now they see the terms, and probably also because that's the one that is for only one year. That left the New Jersey lease, the one that will last until 2010.

Here, SCO's strategy of not revealing the details until the hearing apparently paid off. They showed up with a witness to testify that this was the absolutely best possible deal they could find. How do you counter that live? Novell told the judge that SCO was spending money by the boatful, and that there will be nothing left for Novell, but the judge ruled that he can't assume that SCO is dead in the water until it is, meaning he can't assume the outcome of the Utah trial. SCO had told the judge that a three-year lease is the best they can find, that most properties in New Jersey want five, and that unless something gets decided fast, as a holdover tenant under New Jersey law, SCO could end up owing the current landlord a lot of money to stay.

Interestingly, SCO's lawyer said that the current landlord is only interested in a three-year lease, but then also told the judge that last year, the landlord gave SCO a one-year extension. I find those two facts hard to put together.

Full post as published by Groklaw on January 08, 2008 (boomark / email).