Case No. 02-13533 (AJG), (Jointly Administered)United States Bankruptcy Court, S.D. New York
August 26, 2003
Alfredo Perez, WEIL, GOTSHAL MANGES LLP, Marcia L. Goldstein, Esq. (MG 2606), Lori R. Fife, Esq. (LF 2839), Alfredo R. Perez, Esq., New York, NY, for Debtors
Harley Goldstein, KATTEN MUCHIN ZAVIS ROSENMAN, for York Road Properties, LLC
STIPULATION AND ORDER RESOLVING YORK ROAD PROPERTIES, LLC’S OBJECTION TO NOTICE OF REJECTION OF EXECUTORY CONTRACTS OR UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY DATED MARCH 27, 2003 AND REQUEST FOR PAYMENT OF ADMINISTRATIVE CLAIM
ARTHUR GONZALEZ, Bankruptcy Judge
This Stipulation and Order (“Stipulation“) is made as of this 26th
day of August, 2003, by and between WorldCom, Inc. and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the “Debtors“) and York Road Properties, LLC (“York Road“), by their respective undersigned counsel.
Pursuant to this Stipulation, the Debtors and York Road hereby agree and stipulate as follows:
RECITALS
WHEREAS, on July 21, 2002 (the “Commencement Date“) and November 8, 2002, 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 March 27, 2003, the Debtors filed and served a Notice of Rejection of Executory Contracts or Unexpired Leases of Nonresidential Real Property (the “Rejection Notice“) in accordance with the Court’s order, dated September 25, 2002, establishing
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certain procedures for the rejection of executory contracts or unexpired leases (the “Rejection Procedures Order“). The Rejection Notice provided for the rejection of certain unexpired leases of nonresidential real property, including that certain lease (the “Lease“) of real property located at 2100 York Road, Oak Brook, Illinois, by and between the Debtors and York Road;
WHEREAS, on April 4, 2003, York Road served the Objection to Notice of Rejection of Executory Contracts or Unexpired Leases of Nonresidential Real Property Dated March 27, 2003 and Request for Payment of Administrative Claim (the “Objection“) in accordance with the Rejection Procedures Order; and
WHEREAS, the Debtors and York Road desire to resolve the Objection without further delay or litigation;
NOW, THEREFORE, the Debtors and York Road hereby stipulate and agree, and the Court hereby orders, that:
1. Upon the entry of this Stipulation by the Court, York Road shall withdraw the Objection, with prejudice.
2. The effective date of the Debtors’ rejection of the Lease shall be April 30, 2003 (the “Rejection Date“).
3. On or prior to the date that is ten (10) business days after the date of entry of this Stipulation by the Court, the Debtors shall pay to York Road, in full and complete satisfaction of all obligations due under the Lease pursuant to section 365(d)(3) of the Bankruptcy Code, $16,618.74 (the “Amount Due“), representing those unpaid amounts which accrued under the Lease between the Commencement Date and the Rejection Date. The Amount Due consists of: (a) $16,572.25, representing amounts due under the Lease attributable to the month of April, 2003 (including $10,863.33 in “base rent,” $2,997 in estimated operating expenses, $2,506 in estimated real estate taxes, and $205.92 in estimated electricity charges); and
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(b) $46.49, representing unpaid electricity charges accrued between the Commencement Date and the Rejection Date.
4. Nothing herein shall be construed as a waiver or limitation of York Road’s claim for damages stemming from the rejection of the Lease, and York Road’s deadline by which to file a proof of claim for damages stemming from the rejection of the Lease shall be October 1, 2003.
IT IS SO ORDERED.
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