SCO Group trustee drops bid for court order regarding loan default

By Lisa Kerner

Charlotte, N.C., Sept. 8 - The SCO Group, Inc. Chapter 11 trustee Edward N. Cahn had his motion withdrawn for an entry of an order determining he is not at default under the loan documents, directing that the automatic stay remains in full force, and deeming wrongful default notices null and void, according to a Thursday court filing.

As previously reported, the main issues raised by the lenders in the default notices stem from the status of sale proceeds and two alleged breaches of the credit agreement.

Cahn said previously the lenders did not seek information on either issue before sending the default notices.

Specifically, the trustee said the lenders claimed that he did not give written notice after the closing of the company's asset sale in connection with the use of 50% of the net proceeds. The lenders also claim Cahn did not pay the remaining 50% of the net sales or license proceeds toward retirement and payment of the loan.

A hearing on the matter had been scheduled previously but postponed.

SCO, based in Lindon, Utah, develops UNIX software technology for distributed, embedded and network-based systems. The company filed for bankruptcy on Sept. 14, 2007. Its Chapter 11 case number is 07-11337.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.