Opinion
Case No.: 02-13533 (AJG), (Jointly Administered)
December 6, 2002
Adam P. Strochak, WEIL, GOTSHAL MANGES LLP, Attorneys for Debtors and Debtors in Possession.
ADAM C. HARRISON, P.C., Attorneys for Power Solutions, LLC.
AMENDED STIPULATION AND CONSENT ORDER RESOLVING MOTIONS OF POWER SOLUTIONS, LLC
Came on for consideration the motions of Power Solutions, LLC ("Power Solutions"): (1) For Relief from the Automatic Stay in Order to Establish and Enforce Maryland Mechanic's Liens dated October 31, 2002; and (2) For Adequate Protection or for Relief from the Automatic Stay to Enforce Virginia Mechanic's Liens dated October 31, 2002 (together, the "Motions"); and upon the Parties' agreement to resolve the Motions as set forth below:
WHEREAS, WorldCom, Inc. and substantially all of its direct and indirect domestic subsidiaries ("WorldCom" or the "Debtors," and, together with Power Solutions, the "Parties") commenced cases under chapter 11 of title 11 of the Bankruptcy Code. The Debtors continue to operate their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code;
WHEREAS, Power Solutions alleges that, prior to the commencement of the cases under chapter 11 of title 11 of the Bankruptcy Code, Power Solutions performed work and supplied materials to property leased by WorldCom in the State of Maryland at 8455 Colesville Road, Silver Spring, Maryland 20910;
WHEREAS, Power Solutions alleges that, prior to the commencement of the cases under chapter 11 of title 11 of the Bankruptcy Code, Power Solutions performed work and supplied materials to properties leased by WorldCom in the Commonwealth of Virginia, as follows:
A. 8200 Greensboro Drive, McLean, Virginia 22102;
By Notice of Rejection of Executory Contracts or Unexpired Leases of Nonresidential Real Property, dated October 30, 2002, WorldCom rejected the unexpired lease on parts of the 5th, 7th, and 11th floors of this property. This Stipulation and Consent Order applies to any other portions of the property for which WorldCom may still hold a lease.
B. 12369 Sunrise Valley Road, Reston, Virginia 20190;
C. 8521 Leesburg Pike, Virginia 22182;
D. 614 Old Brandy Road, Culpeper, Virginia 22701;
E. 110 Church Avenue, Roanoke, Virginia 24011. The aforementioned properties are referred to collectively as the "Virginia Properties."
WHEREAS, Power Solutions moved for relief from the automatic stay, on motions dated October 31, 2002, pursuant to section 362(d) of the Bankruptcy Code (the "Motions") in order to commence mechanics' lien enforcement actions with respect to the aforementioned properties leased by WorldCom in the State of Maryland and the Commonwealth of Virginia, against WorldCom and other non-debtor third-parties, contending that such relief is needed to perfect and enforce its lien rights against WorldCom and other non-debtor third parties; and
WHEREAS, Power Solutions alleges that, prior to the commencement of the cases under chapter 11 of title 11 of the Bankruptcy Code, Power Solutions performed work and supplied materials to property owned by WorldCom and located at 22001 Loudoun County Parkway in Ashburn, Virginia, and 601 So. 12th Street in Arlington, Virginia, which properties also were the subject of requests for relief in the Motions;
WHEREAS, the Parties agree to resolve the Motions by entry of this Amended Stipulation and Consent Order.
IT IS HEREBY STIPULATED, AGREED, AND ORDERED:
1. The Motions are withdrawn.
2. Power Solutions is hereby authorized to commence a mechanics' lien enforcement action against the property leased by WorldCom at 8455 Colesville Road, Silver Spring, Maryland 20910, in the State of Maryland against WorldCom and any other non-debtor third parties that Power Solutions deems, in its sole discretion, to be necessary parties to the action. Power Solutions shall provide this Court with notice of the commencement thereof.
3. Power Solutions is hereby authorized to commence mechanics' lien enforcement actions against the Virginia Properties leased by WorldCom in the Commonwealth of Virginia, against WorldCom and any other non-debtor third parties that Power Solutions deems, in its sole discretion, to be necessary parties to the action. Power Solutions shall provide this Court and the Debtors with notice of the commencement thereof.
4. Upon Power Solutions' commencement of the aforementioned Maryland and Virginia mechanics lien actions, Power Solutions shall be stayed from taking any further actions against any and all party defendants to the action with respect to the prosecution of the actions, and the time of all party defendants to the actions to answer or appear in the actions will be stayed until: (a) confirmation of a plan of reorganization in these cases; or (b) further order of this Bankruptcy Court with respect to the prosecution and/or defense of the actions.
5. Service of this Amended Stipulation and Consent Order shall be made upon all parties to the actions and upon the court in which the actions may be filed.
6. This Amended Stipulation and Consent Order is agreed and entered into without prejudice to Power Solutions' right to seek other, further relief from the automatic stay in this matter at a later date.
7. This Amended Stipulation and Consent Order is agreed and entered into without prejudice to WorldCom's right to seek reimbursement from Power Solutions of all costs incurred in the mechanics lien actions and the costs of responding to this motion, at a later time.