The actuality of the memo was less nefarious. An IBM executive wanted to ensure that the Linux developers were sandboxed from AIX/Dynix. So he ordered them to remove local copies of any AIX code from their workstations so that there would not be a hint of taint. The source code still existed in CVMC and was not touched.
Since the source code was still in CMVC, Judge Wells ruled IBM did not destroy it. Incredulously, SCO's Mark James requested that IBM tell SCO how to obtain the information. IBM's Todd Shaughnessy responded that all during discovery (when IBM gave SCO a server with their CMVC database) SCO never once said that they were unable to find that information from CMVC. Judge Wells asked IBM to help SCO out in any way he could. I'm guessing she probably said "pretty please" so that SCO does not have much to appeal."