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Mr. Cahn Files a Bond

By Pamela Jones et al.

Edward Cahn, the attorney appointed as Chapter 11 trustee to take over for SCO management, has filed a bond, a requirement under bankruptcy law, and sent notices to the largest SCO creditors and all the attorneys who have ever appeared that in the future all legal notices are to be sent to his attorney. One such notice was sent to SCO's bankruptcy attorneys.

Filing the bond is one of the normal things that happens -- the trustee has authority to act as management, after all, and that means money, and any time money is in the picture and a new stranger walks in to run a company, appointed by the US Trustee's Office, which is part of the DOJ, they want some guarantee that he won't fly to Rio with the cash, and that if he does, the replacement money is already in hand in case someone sues over his decisions and actions. Hey. It happens. The bond is returned when he faithfully has fulfilled his responsibilities, and no, he's not responsible for anything SCO did or does, just his actions. Money clouds people's thinking, my mom told me. "It creates conflicts," is the way she put it. And the SCO saga is nothing if not a monument to the accuracy of her assessment. And what if the old SCOfolk don't like the way he runs the company? You think that's possible? Might they sue? Is the sky blue?

Full post as published by Groklaw on September 14, 2009 (boomark / email).