Opinion
Case No. 02-13533-AJG, (Jointly Administered)
August 27, 2003
WEIL, GOTSHAL MANGES LLP, Marcia L. Goldstein, Esq., Lori R. Fife, Esq., Alfredo R. Perez, Esq., for the Debtors and Debtors in Possession
TEXAS COMPTROLLER OF PUBLIC ACCOUNTS, Bankruptcy Collections Division, Jay W. Hurst, Austin, Texas, Attorneys for the Claimant
STIPULATION AND AGREED ORDER RESOLVING THE DEBTOR'S OBJECTION TO CLAIM NUMBER 23588 OF THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS
This Stipulation and Order (the "Stipulation") is made as of this 30th day of July, 2003, by and between WorldCom, Inc. ("WorldCom") and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively with WorldCom, the "Debtors" and individually a "Debtor") and the Texas Comptroller of Public Accounts (the "Claimant").
Pursuant to this Stipulation, the Debtors and Claimant hereby agree and stipulate as follows:
RECITALS
WHEREAS, on July 21, 2002 and continuing thereafter (the "Commencement Date"), the Debtors commenced cases under chapter 11 of title 11 of the United States Code (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. By order dated July 22, 2002 and subsequent orders, the Debtors' chapter 11 cases have been consolidated for procedural purposes only and are being jointly administered.
WHEREAS, on or about January 23, 2003, Claimant filed Proof of Claim No. 23588 in the amount of $4,782,434.69 as a general unsecured claim (the "Claim").
WHEREAS, on or about April 14, 2003, the Debtors filed their Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code (the "Plan").
WHEREAS, on June 12, 2003, the Debtors filed their Fourteenth Omnibus Objection to Proofs of Claim (Reclassification, Subordination and, as Applicable, Late Claims) (the "Objection"), objecting to the Claim, among others, because Claimant asserted damages arising from the purchase or sale of Debtors' securities.
WHEREAS, the Objection requested that the Claim be reclassified and subordinated pursuant to Bankruptcy Code Section 510(b) for purposes of voting and distribution under the Plan.
AGREEMENT
NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which hereby is acknowledged, the parties hereto stipulate and agree as follows:
1. The Claimant's Claim, No. 23588, shall be reclassified and subordinated pursuant to 11 U.S.C. § 510(b), and shall be an allowed claim in Class 7 of the Plan.
2. This Stipulation shall become effective and binding as of entry of this Stipulation on the docket as "so ordered" by the Court. In the event that this Stipulation is not approved by the Court or the Plan is not confirmed, it shall be null and void and have no force or effect and the parties agree that, in such circumstances, this Stipulation shall be of no evidentiary value whatsoever in any proceedings.
IT IS SO ORDERED.