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SCO Goes Private With $100 Million Backing
AmIAnAi writes "Just when you thought it was all over, the SCO story takes a new twist. SCO has received $100 million financing from Stephen Norris Capital Partners to get them out of Chapter 11 and go private 'The move gives Stephen Norris, whose namesake founder was a co-founder of private equity giant The Carlyle Group, a controlling interest in SCO, which now has a platform to continue its court battle with Novell Inc. over royalties from the Unix server operating system, SCO's main business ... According to a statement from the company, SNCP already has a business plan for SCO that includes pursuing its legal claims.'"
Bruce
Bruce Perens.
Certiainly doesn't look like a winning product portfolio, well not in their hands at least.
I'm sick of following my dreams. I'm just going to ask where they're goin' and hook up with 'em later.
"The Big Guys Work For The Carlyle Group
What exactly does it do?
To find out, we peeked down the rabbit hole.
FORTUNE Monday, March 18, 2002
The Carlyle Group, a Washington, D.C., buyout firm, is one of the nation's largest defense contractors. It has billions of dollars at its disposal and employs a few important people. Maybe you've heard of them: former Secretary of State Jim Baker, former Secretary of Defense Frank Carlucci, and former White House budget director Dick Darman. Wait, we're just getting warmed up. William Kennard, who recently headed the FCC, and Arthur Levitt, who just left the SEC, also work for Carlyle. As do former British Prime Minister John Major and former Philippines President Fidel Ramos. Let's see, are we forgetting anyone? Oh, right, former President George Herbert Walker Bush is on the payroll too..."
http://www.carlylegroup.net/thebigguys.htm
So now the Bushes are going to send Jim Baker to court to steal Linux.
"Hahahaha. Maybe this is the key? That's code, I think, for 'this will enable the company to continue to attack Linux'."
http://www.groklaw.net/article.php?story=20080214125705140
Can't believe they forgot the Groklaw link!
My recollection is that the bin Laden family (not Osama) had a trivial stake in Carlyle, and that both President Bushes have served on its board. The GP's "the Carlyle Group is mostly Bush and bin Laden money" is wildly exaggerated, to put it mildly, although I'd be curious to hear more of his theories about "who might actually be doing what, and what's at stake".
What I'm listening to now on Pandora...
You're the man. =)
If you want news from today, you have to come back tomorrow.
> SCO has received $100 million financing
SCO has received nothing except offer (which is probably contingent on many conditions). They cannot accept it without permission of the bankruptcy court. To read some actual facts go to Groklaw.
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
And you can't do a deal like this without authorization from the Bankruptcy Court. This will probably all be part of a Chapter 11 plan of reorganization the details of which have yet to be filed by SCO. The devil is in the details with these things and you can be sure SCO will be out to screw all general unsecured creditors; that's pretty much par for the course in all Chapter 11 plans. Also, expect a lot of Bankruptcy Court litigation over the status of Novell's claim, i.e. SCO will attempt to lump them in with the other general unsecured creditors and Novell will assert its trust theory. At any rate the post petition funding here will not be available to SCO's pre-petition creditors, including Novell. All those claims are dealt with in the CH 11 Plan and are discharged by the approval of the Plan.
Amazing that in one line people create a [false] connection with UBL and two US Presidents, but these same lefty conspiracy theorists never mention the reported 100Million deal between the Clintons and the Dubai Royalty. Notice that HRC has not disclosed her taxes, even though she falsely claimed she "routinely" does. And no one is asking where she got that 5million to loan her campaign.... Meanwhile -- FYI : the Carlyle Group is run by Louis G and its list of management and partners do not mention Bush 41 or 43 or UBL. (Louis G of Nabisco and IBM success, BTW.) Team Members Chairman Louis V. Gerstner, Jr. Founders William E. Conway, Jr. Daniel A. D'Aniello David M. Rubenstein
My first impression is that the bankruptcy are having, or are about to have, some expanding negative effect. This seems a relatively cheap way to solve the problem. If SCO is private, pays off all debtors, then they can defend against external scrutiny, and are free to do as they wish.
The $ 100 million dollar pledge is simply there to say that the company will be funded well enough to pay off future obligations, should they manifest. Furthermore, the additional monies do not seem to be an investment, but a line of credit that the firm will have to repay.
So, in effect, this is appears to be some sort of fancy consolidation loan. Certainly likely done as some sort of personal favor, but I bet no one losses money on it. One hears about these kind of tax shelters all the time.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
The Saudi Arabian relatives of Osama bin Laden were also investors in Carlyle until October 2001 when the family sold its $2.02 million investment back to the firm in light of the public controversy surrounding bin Laden's family after the terrorist attack on September 11, 2001. The bin Laden family has publicly disowned the al-Qaeda leader.[5] Osama bin Laden has no publicly known or acknowledged economic interest in Saudi Binladin Group (SBG), whose investments were in part managed by the Carlyle Group until the arrangement was terminated by mutual consent.
This doesn't do that much for SCO. It gives Novell, IBM and Red Hat cash to go after. Remember, there are substantial legal claims against SCO, and those claims are on much stronger grounds than SCO's claims against anybody.
SCO is headed for their day in court:
U.S. District Court - District of Utah - Court Calendar
Honorable Dale A. Kimball
Tuesday, 04/29/2008
08:30 am: SCO Grp v. Novell Inc (2:04-cv-00139-DAK-BCW) Bench Trial
The only question in that trial is how much money SCO owes Novell. SCO will appeal, but they are unlikely to win.