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1, The chapter11 administrators are lawyers. 2, Their only hope for any income is lawsuits. They can bill for pursuing another lawsuit (see 1) They risk bein
by uiygbouybv 17y ago
1, The chapter11 administrators are lawyers.
2, Their only hope for any income is lawsuits.
They can bill for pursuing another lawsuit (see 1)
They risk being sued if they don't pursue any source of income (see 2)
-> expect this to go on for ever.
- ajross 17y agoWho do the lawyers bill though, SCO? SCO is bankrupt, and clearly Novell is a much higher priority creditor than they would be. So they only get paid if they win. If they can't win, they're just throwing money down the toilet. No matter how unethical SCO's trustees might be, they're not morons. Likewise, the incentive for other stakeholders to sue the trustees for not pursuing income needs to be balanced against the fact that they're suing an entity that's, y'know, bankrupt and unable to pay any judgement.
- uiygbouybv 17y agoBankrupt doesn't mean there is no money left. The receivers generally get first call on any remaining assets (otherwise who would be a receiver?). The trustees are likely to be a large commercial law+accounting firm - they are a common target for lawsuits, since it's the only way for other lower ranked creditors to get any money back Then there is the wholly unfounded suggestion that they might receive some lucrative business from another operating system vendor (through a couple of middlemen) to keep this whole circus going.
- kragen 17y agoThey risk being sued personally if they breach fiduciary duty. It isn't that the corporation risks being sued if its administrators breach fiduciary duty.