[ale] It might be too late to sell your SCOX stock

[Jeff Lightner]

You missed the point of my mail.  Even if a judge orders a payment as
result of the litigation it is likely a bankruptcy court judge would
either hold such an order in abeyance or vacate it completely in order
to allow the reorganization to occur.   

You're also incorrect about judge's order to pay up trumping all other
debts.  More than one person in America has had judgments against them
in court of law for unpaid bills without ever having paid the bill.
While a judge could theoretically order assets of the corporation be
seized in order to satisfy the debt in practice it almost never happens
and such an order would immediately be challenged in the bankruptcy
court which again would likely overturn it or put it on hold.   

As I noted before it is unusual for two courts to get into
jurisdictional wars.   The first court would almost certainly hold that
it had dispensed justice by making its findings and judgments and
wouldn't concern itself with enforcing the actual payment in light of
the bankruptcy court's involvement.

-----Original Message-----
From: ale-bounces at ale.org [mailto:ale-bounces at ale.org] On Behalf Of
James P. Kinney III
Sent: Monday, September 17, 2007 6:25 PM
To: Atlanta Linux Enthusiasts
Subject: RE: [ale] It might be too late to sell your SCOX stock

On Mon, 2007-09-17 at 17:18 -0400, Jeff Lightner wrote:

> The only debt I know of that you can never get rid of via bankruptcy
is
> IRS debt.  Of course personal bankruptcy laws have changed to favor
> corporations over individuals under the Republicans but this
discussion
> is about corporations so the old rules still apply.
 Add student loans to that list of always around even after bankruptcy.

One thing to add to this mix with SCO is if the Novell judgment included
a judges order to payup, that will trump all other debts SCO may have.
As that is far more cash due out than SCO has in assets (thus can't
borrow the money even if they had any credit left) if they are forced to
pay up, the only payout may be a forced sale of all assets. That rarely
happens but in this case it just might.

I'll pony up $5 for the desk. $10 if it has Daryl's fingertips slammed
off in a drawer... <cue evil laughter>
-- 
James P. Kinney III          
CEO & Director of Engineering 
Local Net Solutions,LLC        
770-493-8244                    
http://www.localnetsolutions.com

GPG ID: 829C6CA7 James P. Kinney III (M.S. Physics)
<jkinney at localnetsolutions.com>
Fingerprint = 3C9E 6366 54FC A3FE BA4D 0659 6190 ADC3 829C 6CA7
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