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Hearing on Interim Compensation/Bonuses set for March 7 at 2 PM in Bankruptcy Ct.

By Pamela Jones et al.

There is a hearing scheduled [PDF] to consider approving the various quarterly fee applications folks working for SCO have filed in bankruptcy court. The hearing will be March 7th at 2 PM. That is the same hearing that will consider whether executive incentive bonuses SCO says were paid in the ordinary course of business really were. The US Trustee's Office apparently doesn't see them that way. SCO would like testimony at the hearing closed to the public and sealed, so if you are thinking of going to the hearing, you probably want to check with the court first. So much has been going on regarding the reorganization plan, this detail about the trustee's concerns hasn't been highlighted, but it's docket numbers 344 and the request to seal is 345 [PDFs]. If anyone can do OCR's on those two, I'd appreciate it.

The applications for interim compensation being considered that day will be Pachulski Stang's, Tanner's, Dorsey & Whitney's [PDF], Berger Singerman's, and of course Mesirow [PDF] -- you remember the "astonishing" first monthly bill from Mesirow -- Novell being the one that called the level of spending reflected in the first bill "astonishing". If you recall, the bill was for $449,888.30 plus expenses of $48,702.11, and Novell told the court that while it would let the interim bill pass, it reserved its right to object to the amount on final application to the court. That won't be at this hearing, I don't think, as we're still in interim compensation territory. This is the filing [PDF] that gives you the grand totals in interim compensation requested by one and all.

There is also a hearing scheduled [PDF] for April 2nd at 2 PM on SCO's Amended Notice of Debtor's Motion to Approve Settlement Compensation or Sale Compensation and Expense Reimbursement to Plan Sponsor, 'plan' meaning their recent reorganization plan, with the deadline for objections being March 26. The original Notice [PDF] mistakenly had April 26 as the deadline.

Full post as published by Groklaw on February 19, 2008 (boomark / email).