Opinion
Case No. 02-13533 (AJG), (Jointly Administered).
July 6, 2005
Robert L. Seigle, Esq., Southampton Legal Services, Inc., Southampton, PA, ATTORNEY FOR CLAIMANT MCI, Inc. (successor to WorldCom, Inc.)
Angela G. Heppner, STINSON MORRISON HECKER LLP, Kansas City, Missouri, Attorneys for Reorganized Debtors.
Mark A. Shaiken, Esq., Douglas Y. Curran, Esq., Angela G. Heppner, Esq., STINSON MORRISON HECKER LLP, Kansas City, MO, Attorneys for Debtors and Debtors in Possession.
JOINT STIPULATION RESOLVING THE DEBTORS' OBJECTION TO CLAIM NUMBER 431
This Joint Stipulation is made and entered into by and among the following: MCI, Inc. (successor to WorldCom, Inc.) and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the "Reorganized Debtors") and Penn Mortgage Bank Corp. (the "Claimant") (the Claimant and the Reorganized Debtors are hereinafter collectively referred to as the "Parties") with reference to the following:
WHEREAS, on July 21, 2002 (the "Commencement Date") and November 8, 2002, WorldCom, Inc. and certain of its direct and indirect domestic subsidiaries commenced cases (the "Bankruptcy Cases") under Chapter 11 of Title 11 of the United States Code (the "Bankruptcy Code"). By Orders dated July 22, 2002 and November 12, 2002, the Debtors' Chapter 11 cases were consolidated for procedural purposes only and are being jointly administered; and
WHEREAS, on October 31, 2003, the Debtors' Modified Second Amended Joint Plan of Reorganization (the "Plan") was confirmed. The Plan became effective on April 20, 2004; and
WHEREAS, on October 29, 2002, this Court entered its Order (a) Pursuant to Bankruptcy Rule 3003 (c)(3) Establishing the Deadline for Filing Certain Proofs of Claim and Approving the Form and Manner of Notice Thereof (the "Bar Date Order"). The Bar Date Order established January 23, 2003 as the bar date (the "Bar Date") for filing proofs of claim in these cases. Pursuant to the terms of the Bar Date Order, on or about November 22, 2002, the Reorganized Debtors mailed notice of the bar date (the "Bar Date Notice") to in excess of 1.2 million creditors and potential claimants; and
WHEREAS, on March 25, 2003, the Court entered its Order Pursuant to 11 U.S.C. § 105 Approving Notice Procedures Regarding Claim Objections and Deemed Schedule Amendment Motions ("Claim Objection Procedure Order"), approving certain procedures regarding noticing of claims objections and omnibus motions for deemed schedule amendments; and
WHEREAS, under the Plan, the Reorganized Debtors were required to object to Proofs of Claim no later than October 18, 2004 (the "Objection Deadline"); and
WHEREAS, on September 3, 2002, the Claimant filed Proof of Claim No. 431 (the "Claim"); and
WHEREAS, on October 15, 2004, the Reorganized Debtors filed objections to the Claim in their 72nd Omnibus Objection (the "Claim Objections"); and WHEREAS, on November 9, 2004, the Claimant filed a response to the Claim Objections, asserting the validity of its Claim; and
WHEREAS, on January 19, 2005, the Court entered a signed Scheduling Order with Respect to Debtors' Objection to Claim No. 431 Filed by Penn Mortgage Bank Corp.; and
WHEREAS, in accordance with a settlement agreement dated June 24, 2005 between the Parties, the Parties wish to resolve the Claim and Claim Objections.
WHEREAS, in consideration of the payment set forth hereunder, and effective upon receipt of such payment, Claimant agrees to release MCI, and the Reorganized Debtors and their predecessors, successors, parents, subsidiaries, affiliates, assigns, agents, and their current and former directors, officers, employees, representatives and shareholders (collectively the "Released MCI Parties"), from any and all claims, proofs of claim, demands, damages, attorneys' fees, causes of action, debts, liabilities, or controversies of any kind whatsoever, whether at law or in equity, whether before a local, state or federal court or state or federal administrative agency or commission, or arbitration administrator, and whether now known or unknown, liquidated or unliquidated, that Claimant has asserted, or could have asserted against the Released MCI Parties relating to the Claim in the Bankruptcy Cases and under the Plan; provided however, that nothing contained in this release shall prevent the Parties from asserting or pursuing any claim to enforce the terms of this Stipulation.
NOW THEREFORE, the Parties stipulate and agree, and the Court ORDERS, that Proof of Claim No. 431 should be reduced and allowed as a Class 4 claim for $7,500 in full and final satisfaction of Claim No. 431 to be paid in accordance with the Plan.
IT IS SO ORDERED.