In its claims for relief in its filing, Novell is asking the court to compel SCO to carry out a full audit under the terms laid out in the APA and to impose "a constructive trust on revenues received by SCO from its new SVRX Licenses with Sun and Microsoft and from its Intellectual Property Licenses with Linux end users and Unix vendors," according to the filing. "Creation of this trust is necessary to protect Novell from SCO's wrongful retention of monies owing Novell due to SCO's failure to perform its remittance obligations" under the terms of the APA, the filing states.
Novell goes on to note,"This constructive trust should be imposed for the additional reason that SCO is quickly dissipating its assets. On information and belief, SCO's revenues are declining, its operational losses are increasing and its cash is dwindling quickly. SCO expects to have only US$11 million in cash remaining for its business operations as of Oct. 31, 2005, just a fraction of the revenue it purportedly generated as a result of its new SVRX Licenses with Sun and Microsoft."
The filing continues, "Novell also seeks an order from the Court attaching SCO's assets pending adjudication of this claim because SCO is quickly dissipating its assets." Attaching a company's assets is a legal action often taken prior to an organization filing for bankruptcy.