Opinion
Case No. 02-13533 (AJG), (Jointly Administered).
July 26, 2005
Mark A. Shaiken, Esq., Norman E. Beal, Esq., STINSON MORRISON HECKER LLP, Kansas City, MO, Attorneys for Debtors and Debtors in Possession.
SIXTH 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 with respect to the claims identified on Exhibit B to this Order (the "Settled Claims"), pursuant to settlement agreements between MCI and the various claimants, each claim listed in Exhibit B shall be allowed in the amount stated in the column entitled SETTLEMENT AMOUNT and shall be treated, under the Plan of Reorganization, as claim in the Class identified in the column entitled CLASS; and it is further
ORDERED that the objections of the Debtors to the proofs of claim identified on Exhibit C to this Order are withdrawn by the Debtors and such claims are allowed and no longer subject to the objections made in the Objection, but the withdrawal of such objections is without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 D to this Order are hereby adjourned until August 9th, 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 the proofs of claim identified on Exhibit E to this Order are hereby adjourned until August 30th, 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 Nos. 497, 539, 575, and 581 filed by Office Team, pursuant to the Letter Agreement between the Reorganized Debtors and Office Team effective July 13, 2005, Claim Nos. 497, 539, and 581 shall be, and hereby are, expunged, and Claim No. 575 shall be, and hereby is, allowed as a class 4 claim in the amount of $20,000.00; and it is further
ORDERED that with respect to Claim Nos. 83, 148, 1626, 1627, 1628, 1629, 1630, 1631, 1632, 1633, 1634, 1635, 1636, 1637, 1638, 1639, 1640, 1641, 1642, 1643, 1644, and 1645, filed by Citicorp Vendor Finance, Inc., pursuant to the Letter Agreement between MCI, Inc. and Citicorp Vendor Finance, Inc., effective June 24, 2005, Citicorp Vendor Finance, Inc. shall have, for all such claims, a single allowed Class 6 Claim in the amount of $50,000 and a single administrative expense claim in the amount of $60,000; and it is further
ORDERED that with respect to Claim No. 3500 filed by Utility Consultants, Inc., as amended by Claim Nos. 38462 and 38467, pursuant to a letter settlement agreement between Utility Consultants, Inc. and MCI, Inc. dated May 6, 2005, Claim No. 3500 is allowed as a Class 6 claim in the amount of $369,052.60, but because such claim already has been paid in accordance with the Plan, no further distribution shall be allowed or paid with respect to such claim, and Claims Nos. 38462 and 38467 are expunged; and it is further
ORDERED that with respect to Claim Nos. 3511, 4577, 4578 and 4579 filed by Otis Elevator Company, pursuant to a letter settlement agreement between Otis Elevator Company and MCI, Inc., Otis Elevator Company shall have, for all such claims, a single allowed Class 4 claim in the amount of $15,196.16, 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. 6397 filed by Nokia Mobile Phones, pursuant to a letter settlement agreement between the parties dated May 13, 2005, Claim No. 6397 is allowed as a Class 6 in the amount of $213,030.24 and as an administrative expense claim in the amount of $12,000.00, 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. 6944 and 6945 and Schedule Nos. 229113320, 329000360, 328028600, 328001020, 324000110, pursuant to a Letter Agreement between the MCI, Inc. and Teksystems Inc., dated October 29, 2004, the MCI, Inc. shall pay to Teksystems Inc. a contract cure amount of $1,146,000.00, and Claim Nos. 6944 and 6945 shall be, and hereby are, expunged; and it is further
ORDERED that with respect to Claim Nos. 7094 and 7095, filed by Cochran Inc., pursuant to the Letter Agreement between the MCI, Inc. and Cochran, Inc., effective March 31, 2005, MCI, Inc. shall pay to Cochran Inc. a contract cure amount of $100,000.00, and Claim Nos. 7094 and 7095 shall be, and hereby are, expunged; and it is further
ORDERED, that with respect to claim number 11459 filed by Calmark, Inc., pursuant to a Settlement Agreement between the parties dated July 7, 2005, the alleged debt of Calmark, Inc. to Debtors has been offset against claim number 11459 and there shall be no distribution on account of claim number 11459, which claim is expunged and disallowed in its entirety; and it is further
ORDERED, that with respect to claim number 16176 filed by Platinum Partners, LP, the Debtor withdraws its objection to the claim number 16176, such withdrawal by Debtor is hereby approved, and claim number 16176 shall be and hereby is allowed as a class 6 unsecured claim in the amount of $109,820, but because such claim already has been paid in accordance with the Plan, no further distribution shall be allowed or paid with respect to such claim; and it is further
ORDERED that with respect to claims numbers 19038, 19037, 19122, and 21396 filed by Ericsson, Inc., pursuant to a letter agreement between the parties dated May 26, 2005, claims numbers 21396, 19038, 19037, and 19122 shall be expunged and MCI shall pay Ericsson, Inc. a contract cure amount of $1,749,062.06, to be paid pursuant to the terms of the Plan and the settlement letter and in full and final satisfaction of the claims of Ericsson, Inc.; and it is further
ORDERED that with respect to Claim Nos. 22494, 22496, and 33808 filed by Bell Howell Mail Messaging Technology, pursuant to the Letter Agreement between MCI, Inc. and Bell Howell Mail Messaging Technology, effective May 12, 2005, MCI, Inc. shall pay Bell Howell Mail Messaging Technology a contract cure amount of $18,870.01, and Claim Nos. 22494, 22496, and 33808 shall be, and hereby are, expunged; and it is further
ORDERED that with respect to Claim Nos. 23004, 23005, 23006 and 23007 filed by Siebel Systems, Inc., pursuant to a Letter Agreement between the MCI, Inc. and Siebel Systems, Inc., dated June 17, 2005, MCI, Inc. shall pay to Siebel Systems, Inc. a contract cure amount of $342,077.54, and Claim Nos. 23004, 23005, 23006 and 23007 shall be, and hereby are, expunged; and it is further
ORDERED that with respect to claims numbers 26259 and 25260 filed by Marconi Communications, Inc. and transferred to Staro Asset Management, pursuant to a letter agreement between the parties dated April 1, 2005, Claims Nos. 26259 and 26260 shall be, and hereby are, allowed as a single Class 6 unsecured claim in the amount of $1,652,027.10, 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 Nos. 28729, 28731 and 28732 filed by Enersys Inc., pursuant to a settlement agreement between the parties, Enersys Inc. shall have, for all such claims, an allowed as a Class 6 claim in the amount of $315,000.00, 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. 31098 filed by National Cable Construction and partially transferred to Platinum Partners Value Arbitrage Fund, pursuant to the Letter Agreement between MCI, Inc. and National Cable Construction, effective June 30th, 2005, National Cable Construction shall have a contract cure in the amount of $55,991.98, and pursuant to the Letter Agreement between the MCI, Inc. and Platinum Partners Value Arbitrage Fund, effective June 30th, 2005, Platinum Partners Value Arbitrage Fund shall have a contract cure in the amount of $75,831.88, and an allowed class 6 claim in the amount of $280,676.80; and it is further
ORDERED, that with respect to claim numbers 32216, 32217, 32218, 32219, and 32220 filed by Eagle Global Logistics, Inc. and claim number 31969 filed by Circle International, Inc., pursuant to a Settlement Agreement between the parties dated April 19, 2005, claim number 32219 is hereby allowed as a class 6 unsecured claim in the amount of $120,000 to be paid in accordance with the plan and the terms of the Settlement Agreement, and claim numbers 32216, 32217, 32218, 32220, and 31969 are hereby expunged and disallowed in their entirety; and it is further
ORDERED that with respect to Claim Nos. 32454 and 32455, filed by Randy Sorenson Associates Corp., pursuant to the Letter Agreement between the MCI, Inc. and David E. Smoot, as trustee for Randy Sorenson Associates Corp., effective June 9, 2005, Randy Sorenson Associates Corp. shall have an allowed Administrative Expense Claim in the amount of $14,708; and it is further
ORDERED that with respect to Claim No. 5593 filed by DB Transport Services, Inc., the Order expunging such claim is hereby set aside and Claim No. 5593 is re-instated, subject to the Objection of the Re-Organized Debtors, which objection is adjourned to August 9, 2005; 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.
EXHIBITS A TO E