Case No. 02-13533-AJG (Jointly Administered)United States Bankruptcy Court, S.D. New York.
January 21, 2003.
Marcia L. Goldstein, Esq., Lori R. Fife, Esq., Alfredo R. Perez, Esq., WEIL, GOTSHAL MANGES LLP, Attorneys for the Debtors and Debtors in Possession.
Jeffrey Rhodes, DICKSTEIN SHAPIRO MORIN OSHINSKY LLP, Albert H. Kramer, Jeffrey Rhodes, Attorneys for APCC Services, Inc., Data Net Systems, L.L.C., Jaroth, Inc. d/b/a/ Pacific Telemanagement Services, Intera Communications Corporation, and Davel Communications, Inc.
STIPULATION AND AGREED ORDER REGARDING PAY PHONE PROVIDERS
ARTHUR J. GONZALEZ, United States Bankruptcy Judge
This Stipulation and Order is made as of this 21st day of January, 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”); APCC Services, Inc. (“APCCS”), Data Net Systems, L.L.C. (“Data Net Systems”), Jaroth, Inc. d/b/a/ Pacific Telemanagement Services (“Pacific”), Intera Communications Corporation (“Intera”), and Davel Communications, Inc. (“Davel”) (collectively, the “PSP Agents”);,, and the parties, by their respective undersigned counsel, 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, the PSP Agents represent that they are duly authorized billing and collection agents, assignees of the claims of, and attorneys-in-fact for, approximately 3,545 independent payphone service providers (“PSPs”) for various purposes, including without limitation, the collection of dial-around compensation from carriers such as certain of the Debtors. The PSP Agents further represent that the PSPs own, install, operate, manage, or maintain payphone services and facilities, including more than 400,000 public payphones, at various locations throughout the United States.
WHEREAS, by order dated October 29, 2002, the Court entered an order establishing January 23, 2003 as the deadline for the filing of a proof of claim against any of the Debtors.
WHEREAS, the PSPs represent that they intend to assert certain claims against a number of the Debtors for the payment of dial-around compensation that, the PSPs contend, is payable to the PSPs under federal law for certain compensable access code and toll free non-coin deposit calls made from their respective payphones.
WHEREAS, if each of the approximately 3,545 PSPs were required to file separate proof of claim against each of the Debtors against which they assert claims, then the PSPs would face the prospect of filing as many as 780,000 individual proofs of claim in the aggregate against the Debtors in these jointly administered cases.
WHEREAS, the filing of as many as 780,000 individual proofs of claim would pose a substantial administrative burden on the Debtors and their estates, as well as the PSP Agents and the PSPs.
WHEREAS, in an effort to streamline the claims process and reduce the administrative burden on the parties, the Debtors and the PSP Agents (in their own capacity and on behalf of the PSPs) have agreed that the claims of the PSPs may be asserted by the filing of proofs of claim by each of the PSP Agents against such Debtors against which the PSPs intend to assert claims, and wherein each PSP Agent will assert, collectively, the claims of their respective PSP customers; provided, however, that each such proof of claim shall identify, in an attachment, each of the respective PSPs and the amounts of their respective claims against the Debtor(s).
WHEREAS, the parties anticipate that the procedure agreed upon will reduce the number proofs of claim to be filed by the PSPs through the PSP Agents and will greatly reduce the administrative burden to the Debtors and their estates, as well as the PSPs and the PSP Agents.
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. This Court has jurisdiction over the matters set forth herein pursuant to 28 U.S.C. § 157 and 1334, and these matters are core matters pursuant to 28 U.S.C. § 157(b). Venue is proper before this Court pursuant to 28 U.S.C. § 1408 and 1409.
2. The claims of the PSPs may be asserted by the filing of proofs of claim by each of the PSP Agents against such Debtors against which the PSPs intend to assert claims and wherein each PSP Agent will assert, collectively, the claims of their respective PSP customers; provided, however, that each such proof of claim shall identify, in an attachment, each of the respective PSPs and the amounts of their respective claims against the Debtor(s).
3. No objection shall be made to the proof of claim filings described in paragraph 2 above on the basis that they are collective filings made by the PSP Agents, instead of individual filings by or on behalf of each PSP; provided, however, that nothing in this Stipulation is intended to, nor shall it be construed to be, a waiver by any of the Debtors or any other party in interest of any right to object to any of the claims filed by or on behalf of the PSPs on any other basis.
4. Each person who executes this Stipulation on behalf of a party hereto represents that he or she is duly authorized to execute this Stipulation on behalf of such party. This Stipulation may be executed in counterparts or with detachable signature pages and shall constitute one agreement, binding upon all parties thereto as if all parties signed the same document.
5. 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, 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.
6. This Stipulation, and the terms and conditions contained herein, shall be binding upon the parties hereto and all of their respective successors and assigns, including, without limitation, any trustee, examiner or monitor appointed under Chapter 7 or Chapter 11 of the Bankruptcy Code in any of these administratively consolidated bankruptcy cases.
IT IS SO ORDERED.