Its Time for SCO to Face the Novell Music
The SCO/Novell court case is once again free to proceed.When SCO filed for Chapter 11 bankruptcy, it was widely seen as a move to avoid the final steps in its case with Novell. On Nov. 27, however, the bankruptcy court lifted its stay on the Novell trial, and so the SCO/Novell court case is once again free to proceed. In his decision, "Granting Novells Motion for Relief from the Automatic Stay to Proceed with the Lawsuit" (PDF link), U.S. Bankruptcy Court Judge Kevin Gross ruled that while "The automatic stay is one of the most fundamental protections provided to the debtor under the Bankruptcy Code," ... "the automatic stay is not meant to be absolute, and in appropriate instances relief may be granted."
In the case of SCOs bankruptcy, an important issue is that the "Debtors [SCO] moved to sell substantially all of their assets. Without a ruling on the Liability Issues it was unclear if the sale would adversely affect Novells rights. Debtors subsequently withdrew the sale motion, but the problem remains."