If you recall, Cahn represented to the court that SCO now has only $145,352.00 in hand left. If you add up the new interim bills and expenses from Blank Rome, calculated at 80% of the actual bills and 100% of the costs which is how interim bills get paid, it comes to $34,601.78. And so the sand is running out of the hourglass, grain by grain, and this story is not yet at the very end. So even though I don't usually predict outcomes, I think it's safe to say that at this rate, barring the unlikely, Ralph Yarro and friends aren't going to get their $2 million loan repaid by SCO. Ever. Only in their dreams.



How persistent money dreams can be. The lenders agreed, in settling a money dispute between them and Cahn, not to object to the amounts of Blank Rome bills, and that they'd only get paid if there are the following:

6. The Lenders acknowledge and agree that the Restated Debt and the Loan Fee will be payable solely from the Litigation Proceeds.

That's how it goes with bankruptcies sometimes. You plan to stiff others and it ends up you getting stiffed yourself. Anyway, we know now who left on Planet Earth still wants the SCO case against IBM to go forward.

Here are the filings:

08/14/2012 - 1422 - Certificate of No Objection Re: Monthly Application for Compensation of Blank Rome LLP (Twenty-First) for the period July 1, 2011 to July 31, 2011 (related document(s)1376) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley) (Entered: 08/14/2012) 08/14/2012 - 1423 - Certificate of No Objection Re: Monthly Application for Compensation of Blank Rome LLP (Twenty-Second) for the period August 1, 2011 to August 31, 2011 (related document(s)1377) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley) (Entered: 08/14/2012) 08/14/2012 - 1424 - Monthly Application for Compensation (Twenty-Sixth) of Blank Rome LLP for the period December 1, 2011 to December 31, 2011 Filed by Blank Rome LLP. Objections due by 9/3/2012. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B) (Tarr, Stanley) (Entered: 08/14/2012) 08/14/2012 - 1425 - Monthly Application for Compensation (Twenty-Seventh) of Blank Rome LLP for the period January 1, 2012 to January 31, 2012 Filed by Blank Rome LLP. Objections due by 9/3/2012. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit A) (Tarr, Stanley) (Entered: 08/14/2012) 08/14/2012 - 1426 - Monthly Application for Compensation (Twenty-Eighth) of Blank Rome LLP for the period February 1, 2012 to February 29, 2012 Filed by Blank Rome LLP. Objections due by 9/3/2012. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B) (Tarr, Stanley) (Entered: 08/14/2012) 08/14/2012 - 1427 - Monthly Application for Compensation (Twenty-Ninth) of Blank Rome LLP for the period March 1, 2012 to March 31, 2012 Filed by Blank Rome LLP. Objections due by 9/3/2012. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B) (Tarr, Stanley) (Entered: 08/14/2012) 08/15/2012 - 1428 - Monthly Application for Compensation (Thirtieth) of Blank Rome LLP for the period April 1, 2012 to July 31, 2012 Filed by Blank Rome LLP. Objections due by 9/4/2012. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B) (Tarr, Stanley) (Entered: 08/15/2012)

But in the last bill, we do see this indication of reality finally settling in:

5/4/2012 - REVIEW AMENDED LOAN AGREEMENT AND NOTE FOR

EVENTS OF DEFAULT AND DISCUSS WIND DOWN WITH S. TARR

5/9/2012 - TELEPHONE CONFERENCE WITH H. JACKSON

REGARDING STATUS OF CASE AND DISCUSSED

LENDER OPPORTUNITIES

5/25/2012 - EMAILS REGARDING POSSIBLE ADDITIONAL FUNDING

That's according to these court filings. I can't represent that this has or hasn't been planned for a very long time. Frankly, I read these monthly reports the way your boss might read expense reports handed to him. They might be true. Probably are. Sorta. But who knows, really? How would you prove it one way or the other?

Update: More, SCO's MORs for June of 2012:

08/16/2012 - 1429 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 6/30/12 (TSG Group,Inc. (f/k/a The SCO Group, Inc.), et al.) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley) (Entered: 08/16/2012) 08/16/2012 - 1430 - Debtor-In-Possession Monthly Operating Report for Filing Period As of 6/30/12 (TSG Operations, Inc. (f/k/a SCO Operations, Inc.), et al.) Filed by Edward N. Cahn, Chapter 11 Trustee for The SCO Group, Inc., et al.. (Tarr, Stanley) (Entered: 08/16/2012)

(1) Total Pre-Petition Liabilities does not reconcile to the amount stated on the Schedules of Assets and Liabilities filed on October 15, 2007 due to timing differences and allocation of accruals. (2) Due to the allocation of accruals and adjustments booked at month end, the net loss for the 9/15/07 to 9/30/07 period does not reconcile to the change in retained earnings. There will not be an unreconciled difference in future periods as Company reporting periods will correspond with the Monthly Operating Report periods.

Update 2: Mr. Cahn is, indeed, sopping up the last crumbs, with plenty of red ink to spare. The lawyers clean up. That's for sure. Look on page 17 of Docket # 1430, and look for footnote 1:

(1) Adjustment to allocate legal expenses surrounding the IBM and Novell litigation to Cost of Goods Sold at Fiscal Quarter Closes (October, January, April & July).

(5,711,909)

And SCO, now TSG, purportedly wants to keep going, asking to reopen the IBM case. What were these crazy people thinking? And why didn't any of their lawyers tell them it was time to stop digging themselves into a hole? What was the real purpose behind all this? Because if it was money, it didn't work.

Update 3: They've now filed the MORs for July and Ocean Park wants some bills paid too: