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Novell Files Objection to SCO's Proposed Sale of Assets to UnXis. Duh. - Updated: as text

By Pamela Jones et al.

Novell has, as expected, filed an objection to SCO's proposed sale of assets to UnXis. It's terse in mood, but unless the judge is asleep, it should do the job.

The first basis for the objection is that SCO doesn't have the "necessary consents" from Novell "for the assumption and assignment of agreements with Novell". As Novell tells the court, "Original APA Section 9.5(c) expressly prohibits its assignment by SCO without Novell's consent." And Novell won't consent this time either, just like last time.

Next, even if SCO could force it past the judge without Novell's consent, Novell says there's another problem: SCO would have to make a cure payment that it can't afford. The purchase price from UnXis is insufficient for that, even added to what SCO has in hand. And finally, there's inadequate "assurance of future performance by unXis as the proposed assignee," Novell delicately mentions. Like they have no record of doing this kind of business or any other kind of business?

Full post as published by Groklaw on February 07, 2011 (boomark / email).