Could open-source be illegal someday?

[Bryan Richard]

On Tue, Jan 27, 2004 at 11:42:25AM -0600, Brian Kelsay wrote:
> >1. Run up a mountain of debt. 
> >2. Write it off in the courts. 
> >3. Business as (un)usual. 
> >
> >What are the SCO financials like? If they are sitting on a sizable
> >amount of cash I could easily seem them using bankruptcy as a model for
> >growth.
> 
> While I'm not a financial expert (INFE), I do recall that you cannot run up high debts on purpose 
and then claim bankruptcy and not pay anything.  Bankruptcy entails restructuring debt, like 
refinancing for a longer term, 30 year instead of 15 and maybe a higher rate, if you do chapter 11. 
 Chapter 13 is more drastic, all assets are frozen, debtors lined up smallest to largest, cash and 
sold assets go to pay debt.  Larger debtors don't get paid completely off, they just get a higher 
percentage of the take.  Every one gets a little piece.  It's not necessarily good to be first in 
line, it means you risked losing more than anyone else.  I witnessed this at Payless Cashways in 
the mid 90s.  I worked across the hall  from the Corp. bigwigs, in the real estate dept.,  when 
they did 11, then 13 (belly-up).  The execs did grab some loot before they left and they got sued 
by shareholders and lienholders.  US Gypsum (they make drywall) basically started to take over the 
company after!
>   they went into 11, but it was too late.   One of the Execs from the US Gypsum board or their 
pres. came in and was something like the pres. pro-tem.   I left just scant days before they hit 
the skid and went 13 and got into the PC biz, but I could see it coming.  I was just a temp, but I 
saw lots of money moving right before the CH. 11 filing.  Favorite vendors were getting paid and 
others were being held.   A local computer equip. vendor got screwed out of a big scanner for 
architect drawings and the PC to go with it.  I was working on the that project and knew that the 
scanner cost $14000.  We took delivery just a couple of days before the Ch. 11.

You're probably right but I do think they could weather
bankruptcy in some form. I imagine they will do whatever needs to be
done in order to see the eventual demise of their suit in the courts. 

The only company that I have experience with going bankrupt is
one that I own stock in: Owens Corning. They're getting quite creative
with their restructuring. For example, they've decided to declare all of
their common stock null and void.

- Bryan