In re WASHINGTON GROUP INTERNATIONAL, INC. et al., Chapter 11 Debtors.

Case No. BK-N-01-31627-GWZ Jointly Administered UnderUnited States Bankruptcy Court, D. Nevada.
March 24, 2003

Sylvia Harrison, WINSTON STRAWN McDONALD CARANO WILSON LLP, Attorneys for the Plan Committee.

Robert Kinas, SNELL WILMER L.L.P., Attorneys for Claimant Thermal Engineering International LLC.

Gail Cooperman, SILLS CUMMUS RADIN TISCHMAN EPSTEIN GROSS, P.A., Attorneys for Claimants Mitsubishi Corporation and Mitsubishi Heavy Industries, Ltd.

ORDER REGARDING PROCEDURES APPLICABLE TO PLAN COMMITTEE’S OBJECTION TO CLAIM OF THERMAL ENGINEERING INTERNATIONAL LLC
GREGG W. ZIVE, United States Bankruptcy Judge

On March 13, 2003, a status conference was held before this Court in the above matter on the Plan Committee’s (the “Committee”) Notice of Objection and Objection to the Claim of Thermal Engineering International LLC (the “Objection”). By the Objection the Committee seeks the disallowance, in whole or part, of the Claim of Thermal Engineering International LLC (“TEI”).

Claimants TEI and Mitsubishi Corporation and Mitsubishi Heavy Industries, Ltd. (collectively “Mitsubishi”), each filed a response to the Objection.

On March 12, 2003, TEI initiated adversary proceeding number 03-05025 seeking certain declaratory relief (the “Adversary Proceeding”). The Adversary Proceeding and the Objection arise out of and relate to the same subcontract between Washington International LLC and TEI in connection with the Damhead Creek Power Station.

After reviewing all the pleadings related to the Objection, receiving testimony and evidence submitted by the parties, hearing the arguments of counsel, and good cause appearing therefor;

IT IS HEREBY ORDERED that:

1. The time within which the Committee is required to file an answer to the Adversary Proceeding shall be extended to May 16, 2003;

2. Should the Committee and TEI fail to consensually resolve the Objection, the Objection shall be resolved in the context of the Adversary Proceeding; and

3. That, any order by this Court resolving either the Objection or the Adversary Proceeding shall not be a determination of Mitsubishi’s liability and, consistent with this Court’s Order Confirming the Second Amended Joint Plan of Reorganization of Washington Group International, Inc., et al., As Modified, entered and filed on December 21, 2001, “shall [not] be deemed to be a waiver or release of claims, rights or defenses (whether now existing or arising in the future) between any party thereto (or its subsidiaries or affiliates) and any third party (and their subsidiaries and affiliates).”