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IBM Objects to York Payment: SCO's Argument is "Nonsense"

By Pamela Jones et al.

IBM has now filed an Objection [PDF] to SCO's Motion to Authorize /Debtors' Motion for Authority to Pay an Expense Reimbursement to York Capital Management. Remember that one? The one where SCO said it had a "moral" duty to pay them, despite being under no contractual obligation to do so? York was the entity that first offered to buy assets from SCO, but the court blocked it, pointing out that the Utah court ruled that Novell owned the assets being proposed to be sold, and then when given a chance to resubmit, instead SCO dropped that reorganization plan without prejudice to resubmit. But despite the deal never happening, SCO claims a moral obligation to pay York's expenses. Here's what IBM calls that: "Nonsense." I'll show you that part of the Objection, and then I'll tell you what I think it means.

Full post as published by Groklaw on April 11, 2008 (boomark / email).