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In re WorldCOM, Inc.

United States Bankruptcy Court, S.D. New York
May 10, 2005
Case No. 02-13533 (AJG), (Jointly Administered) (Bankr. S.D.N.Y. May. 10, 2005)

Opinion

Case No. 02-13533 (AJG), (Jointly Administered).

May 10, 2005

Mark A. Shaiken, Esq., Norman E. Beal, Esq., STINSON MORRISON HECKER LLP, Kansas City, MO, Attorneys for Debtors and Debtors in Possession.


FIFTH ORDER GRANTING, IN PART, DEBTORS' FIFTY-THIRD OMNIBUS OBJECTION TO PROOFS OF CLAIM (PROCUREMENT CLAIMS)


The Court has considered the Debtors' Fifty-Third Omnibus Objection to Proofs of Claim (Procurement Claims) filed by WorldCom, Inc. and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Debtors"), dated October 14, 2004 (the "Objection"). In the Objection, Debtors seek the disallowance and expungement, reduction in amount, and reclassification of certain proofs of claim, as set forth in the Objections and the exhibits thereto. It appears to the Court that the treatment of claims subject to the Objection, as and to the extent provided herein, including the settlement and adjournment of various of Debtor's objections, is in the best interest of the Debtors, their estates and their creditors and that good and sufficient notice was given in accordance with the Claim Objection Procedures Order.

Capitalized terms used but not defined herein shall retain the same meaning ascribed to such term in the Objection.

IT IS THEREFORE:

ORDERED that the proofs of claim identified on Exhibit A to this Order are hereby expunged and disallowed in their entirety due to the claimants' failures to respond to the Objection in accordance with the procedures required by the notices of the Objection provided to such claimants, or the claimants' agreement to such expungement and disallowance; and it is further

ORDERED that the objections of the Debtors to the proofs of claim identified on Exhibit B to this Order are withdrawn by the Debtors and such claims are allowed and no longer subject to the objections made in the Objection, but the withdrawal of such objections is without prejudice to any other objections to the proofs of claim that the Debtors have asserted elsewhere; and it is further

ORDERED that the proofs of claim identified on Exhibit C to this Order are hereby adjourned until July 26th, 2005, at 10 a.m. Eastern Standard Time, in the U.S. Bankruptcy Court for the Southern District of New York, One Bowling Green, 5th Floor, New York, New York 10004-1408, and that the Debtors have expressly reserved and shall have the right to further object to the adjourned claims; and it is further

ORDERED that with respect to claim number 1242 filed by Nationwide Advertising Service, pursuant to a letter agreement between the parties dated January 6, 2005, Claim No. 1242 shall be, and hereby is, allowed as a Class 6 unsecured claim in the amount of $88,997.93, to be paid in accordance with the Plan and terms of the letter agreement; and it is further

ORDERED that with respect to Claim No. 7028 filed by RAD Data Communications, Inc., and transferred to Staro Asset Management, pursuant to a letter agreement between the parties dated March 24, 2005, Claim No. 7028 shall be, and hereby is, allowed as a Class 4 unsecured claim in the amount of $40,000.00, to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to Claim No. 7316 filed by RAD Data Communications, Inc., pursuant to a letter agreement between the parties dated April 14, 2005, Claim No. 7316 shall be, and hereby is, allowed as a Class 4 unsecured claim in the amount of $10,729.05, to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to claim number 29303 filed by Deutsche Bank Securities pursuant to a letter agreement between the parties dated May 2, 2005, claim number 29303 shall be, and hereby is, allowed as a class 4 unsecured claim in the amount of $546.41, to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to Claim No. 2005 filed by Associated Fire Protection, pursuant to a letter settlement agreement between the parties Claim No. 2005 is hereby allowed as a Class 4 claim in the amount of $4,252.72, to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to Claim No. 3699 filed by Legal Network, Inc., pursuant to a letter settlement agreement dated April 18, 2005, between the parties, Claim No. 3699 is hereby allowed as a Class 4 claim in the amount of $10,821.12, to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to Claim No. 4517 filed by Battery Systems, pursuant to a letter settlement agreement between the parties Claim No. 4517 is hereby allowed as a Class 4 claim in the amount of $1,580.94, to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to claim number 5217 filed by Temco Service Industries, Inc., pursuant to a Settlement Agreement between the parties dated April 11, 2005, Claim No. 5217 shall be, and hereby is, allowed as Class 4 unsecured claim in the amount of $3,740.89 to be paid in accordance with the Plan and the terms of the Settlement Agreement; and it is further

ORDERED that with respect to claim number 5238 filed by Dig Safely New York, Inc., pursuant to a Settlement Agreement between the parties executed on May 3, 2005, Claim No. 5238 shall be, and hereby is, allowed as Class 4 unsecured claim in the amount of $13, 999.26 to be paid in accordance with the Plan and the terms of the Settlement Agreement; and it is further

ORDERED that with respect to claim number 5276 filed by Thomas Bingham, pursuant to a Settlement Agreement between the parties dated April 11, 2005, Claim No. 5276 shall be, and hereby is, allowed as Class 4 unsecured claim in the amount of $13,558.25 to be paid in accordance with the Plan and the terms of the Settlement Agreement; and it is further

ORDERED that with respect to Claim No. 6429 filed by Patterson Dewar Engineers, Inc. pursuant to a letter agreement dated April 29, 2005 between the parties, Claim No. 6429 shall be, and hereby is, allowed as a Class 6 claim in the amount of $52,022.26 to be paid in accordance with the Plan; and it is further

ORDERED that with respect to Claim No. 8033 filed by Intech Staffing Inc., pursuant to a letter settlement agreement dated March 29, 2005 between the parties, Claim No. 8033 is hereby allowed as a Class 4 claim in the amount of $7,814.00, to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to claims numbers 9516, 9517, 9518, and 10047 filed by Information Builders, pursuant to a letter agreement dated April 6, 2005 between MCI and Information Builders, the cure amount for the assumed contract (Agreement Number 98123102) is set as $192,172.90, to be paid in accordance with the terms of the Plan of Reorganization, and claims numbers 9516, 9517, 9518, and 10047 shall be, and hereby are, expunged; and it is further

ORDERED that with respect to claim number 9970 filed by Larscom Incorporated, pursuant to a letter agreement between the parties dated May 3, 2005, Claim No. 9970 shall be, and hereby is, allowed as a Class 6 unsecured claim in the amount of $483,229.04, to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to claim numbers 11641 and 21512 filed by Corporate Express, Inc., pursuant to settlement agreement between the parties executed April 19, 2005, claim nos. 11641 and 21512 shall be and hereby are disallowed and expunged; and it is further

ORDERED that with respect to Claim Nos. 12273, 12274, 12275, 12276, 12277, 12278, 12279, 12280, 35994 filed by De Lage Landen Financial Services, Inc., pursuant to a letter settlement agreement effective April 26, 2005, Claim 12273 is hereby allowed as a Class 6 claim in the amount of $52,882.22, to be paid in accordance with the Plan and the terms of the letter settlement agreement, and Claims 12274, 12275, 12276, 12277, 12278, 12279, 12280, 35994 are hereby expunged and disallowed in their entirety in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to claim number 12733 filed by C.A. Sabah Co. pursuant to a letter agreement between the parties dated May 2, 2005, Claim No. 12733 shall be, and hereby is, allowed as a Class 4 unsecured claim in the amount of $24,644.59, to be paid in accordance with the Plan and the terms of the letter agreement dated May 2, 2005; and it is further

ORDERED that with respect to Claim No. 15853 filed by AMDOCS Champaign, Inc. and Claim No. 15855 filed by AMDOCS Stamford, Inc., pursuant to a settlement agreement between the parties dated March 31, 2005, Claim Nos. 15853 and 15855 are hereby allowed as Class 6 claims in the aggregate amount of $3,900,000.00 to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to Claim No. 15853 filed by AMDOCS Champaign, Inc. and Claim No. 15855 filed by AMDOCS Stamford, Inc., pursuant to a settlement agreement between the parties dated March 31, 2005, Claim Nos. 15853 and 15855 are hereby allowed as Class 6 claims in the aggregate amount of $3,900,000.00 to be paid in accordance with the Plan and the terms of the letter agreement; and it is further

ORDERED that with respect to Claim No. 16295 filed by Spectel, Inc., and subsequently acquired by Avaya, Inc., pursuant to a letter agreement dated May 2, 2005, between the parties, Claim No. 16295 shall be, and hereby is, allowed as a Class 4 claim in the amount of $40,000.00 to be paid in accordance with the Plan; and it is further

ORDERED that with respect to claim number 16442 filed by Top Secret pursuant to a Settlement Agreement between the parties dated April 19, 2005, Claim No. 16442 shall be, and hereby is, allowed as Class 4 unsecured claim in the amount of $3,740.89 to be paid in accordance with the Plan and the terms of the Settlement Agreement; and it is further

ORDERED that with respect to Claim Nos. 18299, 18300, 18301, and 18302 filed by ECI Telecom, Inc., and Claims 18303 and 18304 filed by Enavis Networks, Inc., pursuant to a letter settlement agreement effective April 13, 2005, Claim 18299 is hereby allowed as a Class 6 claim in the amount of $260,421.84, to be paid in accordance with the Plan and the terms of the letter settlement agreement, Claim 18300 is hereby expunged and disallowed in its entirety in accordance with the Plan and the terms of the letter settlement agreement, Claim 18301 is hereby allowed as a Class 4 claim in the amount of $7,521.66, to be paid in accordance with the Plan and the terms of the letter settlement agreement, Claim 18302 is hereby allowed as a Class 4 claim in the amount of $17,187.25, to be paid in accordance with the Plan and the terms of the letter settlement agreement, 18303 is hereby allowed as a Class 6 claim in the amount of $147,604.00, to be paid in accordance with the Plan and the terms of the letter settlement agreement, and 18304 is hereby allowed as a Class 6 claim in the amount of $598,122.76, to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to Claim No. 22161 filed by General Fiber Communications, Inc., pursuant to a letter settlement agreement dated March 23, 2005, Claim No. 22161 is hereby allowed as a Class 6 claim in the amount of $824,210.70, to be paid in accordance with the Plan and the terms of the letter settlement agreement, and any other orders providing for treatment of such claim are hereby set aside, the treatment of Claim No. 22161 to be solely as provided in this Order; and it is further

ORDERED that with respect to claim number 15213 filed by Teleplus, Inc., and transferred to Debt Acquisition Company of America V, LLC, the order entered by this Court on December 13, 2004 expunging such claim is hereby set aside, such claim is hereby re-instated subject to Debtors 53rd Omnibus Objection to claims, and the hearing on Debtors' objection is adjourned to July 12, 2005; and it is further

ORDERED that with respect to Claims 15484 and 15647 filed by SCIENCE APPLICATIONS INTERNATIONAL CORPORATION, pursuant to a letter settlement agreement between the parties dated March 22, 2005, Claim 15484 is hereby allowed as a Class 6 claim under the Plan in the amount of $281,186.70 and Claim 15647 is hereby allowed as a Class 6 claim under the Plan in the amount of $211,500.00, such claims to be paid in accordance with the Plan and the terms of the letter settlement agreement; and it is further

ORDERED that with respect to Claim 1341 filed by Anicom, Inc., the objections to such claim will be governed by a Scheduling Order under F.R.Civ.P. 16(b) submitted or to be submitted to the Court for consideration and entry; and it is further

ORDERED that with respect to Claim 5834 filed by Anicom, Inc., the objections to such claim will be governed by a Scheduling Order under F.R.Civ.P. 16(b) submitted or to be submitted to the Court for consideration and entry; and it is further

ORDERED that with respect to Claim 12639 filed by Prestige Care Services Co., the objections to such claim will be governed by a Scheduling Order under F.R.Civ.P. 16(b) submitted or to be submitted to the Court for consideration and entry; and it is further

ORDERED that, to the extent the Objection, as filed, objects to any proofs of claims not addressed by this Order (the "Remaining Disputed Proofs of Claim"), the Debtors' have reserved and shall have the right to further prosecute their objections against the Remaining Disputed Proofs of Claim and nothing herein shall limit, restrict, or otherwise affect the Debtors' right to do so.

EXHIBIT A

EXHIBIT B

EXHIBIT C


Summaries of

In re WorldCOM, Inc.

United States Bankruptcy Court, S.D. New York
May 10, 2005
Case No. 02-13533 (AJG), (Jointly Administered) (Bankr. S.D.N.Y. May. 10, 2005)
Case details for

In re WorldCOM, Inc.

Case Details

Full title:In re: WORLDCOM, INC., et al., Chapter 11, Debtors

Court:United States Bankruptcy Court, S.D. New York

Date published: May 10, 2005

Citations

Case No. 02-13533 (AJG), (Jointly Administered) (Bankr. S.D.N.Y. May. 10, 2005)