In re WORLDCOM, INC., et al., Chapter 11, Debtors

Case No. 02-13533 (AJG), (Jointly Administered)United States Bankruptcy Court, S.D. New York.
October 7, 2003

Marcia L. Goldstein, Esq., WEIL, GOTSHAL MANGES LLP, New York, NY, Lori R. Fife, Esq., WEIL, GOTSHAL MANGES LLP, New York, NY, Alfredo R. Perez, Esq., WEIL, GOTSHAL MANGES LLP, New York, NY, for the Debtors and Debtors in Possession

Andrew P. Lederman, Esq., SONNENSCHEIN NATH ROSENTHAL, LLP, New York, New York, for EOP-Oakbrook Terrace, LLC

ARTHUR GONZALEZ, Bankruptcy Judge

WHEREAS, on July 21, 2002 (the “Commencement Date”) and November 8, 2002, WorldCom, Inc. (“WorldCom”) and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, 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 May 28, 2003, July 10, 2003, August 6, 2003, and September 12, 2003, the Court approved the Debtors’ Disclosure Statement Pursuant to Section 1125 of the Bankruptcy Code, dated May 23, 2003, the First Supplement thereto, dated July 9, 2003, the Second Supplement thereto, dated August 6, 2003, and the Third Supplement thereto, dated September 12, 2003 (collectively, the “Disclosure Statement”) and scheduled the hearing for the Court to consider the confirmation of the Debtors’ Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code (the “Plan”). The hearing on confirmation of the Plan began on September 8, 2003,

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continuing thereafter. Capitalized terms not defined herein shall have the meanings ascribed such terms in the Plan.

WHEREAS, on December 16, 1997, the Debtors entered that certain lease agreement with EOP-Oakbrook Terrace, L.L.C. (“Oakbrook”) to occupy the premises at One Tower Lane, Oakbrook Terrace, Illinois (the “Lease”), and, on June 27, 2002, entered that certain letter agreement with respect to thereto (the “Letter Agreement”).

WHEREAS, on May 29, 2003, the Debtor notified Oakbrook of its intent to reject the Lease and the Letter Agreement effective May 30, 2003 (the “Rejection Date”).

WHEREAS, as of the Rejection Date, the Debtors owed Oakbrook $6,437.00 in post-petition maintenance charges arising under the Lease and Letter Agreement[1] .

WHEREAS, on August 4, 2003, Oakbrook filed an application for allowance of its administrative claim (the “Application”) to obtain payment for the $6,437.00 post-petition maintenance charges (the “Oakbrook Claim”)

WHEREAS, in order to resolve the Application, the Debtors and Oakbrook have negotiated this Stipulation in good faith and at arms’ length and desire that it shall be binding on each of them.

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and between the Debtors and Oakbrook, through their undersigned counsel, that:

1. The Application is hereby granted.

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2. On or before ten (10) days after the Court’s entry of an Order approving this Stipulation, the Debtors shall deliver $6,437.00 to the undersigned counsel for Oakbrook, in full and complete satisfaction of the Oakbrook Claim.

3. Each person who executes this Stipulation represents that he or she is duly authorized to execute this Stipulation on behalf of the respective parties hereto and that each such party has full knowledge and has consented to this Stipulation.

4. This Stipulation may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument and it shall constitute sufficient proof of this Stipulation to present any copy, copies or facsimiles signed by the parties hereto to be charged.

5. This Stipulation, and the terms and conditions contained herein, are subject to the approval of the Court and shall inure to the benefit of the Debtors, their successors and assigns, including, without limitation, a trustee, if any, appointed under chapter 7 or 11 of the Bankruptcy Code.

6. Nothing herein shall be construed to affect the claims or priorities of creditors in these bankruptcy proceedings other than the Oakbrook Claim as defined herein.

[1] The post-petition maintenance charges include fees for rubbish removal services and miscellaneous repairs as set forth on Exhibit A to Oakbrook’s Application.