Case No. 02-13533 (AJG), Jointly Administered.United States Bankruptcy Court, S.D. New York.
May 4, 2004
ORDER PURSUANT TO RULE 9019 OF THE FEDERAL RULES OF BANKRUPTCY PROCEDURE APPROVING SETTLEMENT AGREEMENT BY AND AMONG THE UNITED STATES OF AMERICA, ACTING THROUGH THE DEPARTMENT OF JUSTICE AND THE UNITED STATES ATTORNEY’S OFFICE FOR THE CENTRAL DISTRICT OF CALIFORNIA, AND ON BEHALF OF THE GENERAL SERVICES ADMINISTRATION, WORLDCOM, INC., ALONG WITH ITS SUBSIDIARIES AND AFFILIATES INCLUDING MCI WORLDCOM COMMUNICATIONS AND JOHN RUSSO, AS RELATOR
ARTHUR GONZALEZ, Bankruptcy Judge
Upon consideration of the motion (the “Motion”) of WorldCom, Inc. as debtors and debtors in possession (“WorldCom” or the “Debtors”), for an order pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), approving a settlement and compromise of certain disputes by and among the United States of America, acting through the Department of Justice and the United States Attorney’s Office for the Central District of California, and on behalf of the General Services Administration, WorldCom, Inc., along with its subsidiaries and affiliates including MCI WorldCom Communications and John Russo, as Relator, as more fully set forth in the Motion; and upon all the proceedings before the Court; and after due deliberation and good and sufficient cause appearing therefor,
IT IS HEREBY FOUND AND DETERMINED THAT:
A. The Court has jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. § 157 and 1334 and the Standing Order of Referral of
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Cases to Bankruptcy Court Judges of the District Court for the Southern District of New York, dated July 19, 1984 (Ward, Acting C.J.), and this matter is a core proceeding pursuant to 28 U.S.C. § 157(b). Venue of these Chapter 11 cases is proper pursuant to 28 U.S.C. § 1408 and 1409.
B. Proper, timely and adequate notice of the Motion and the hearing thereon was provided; and no other or further notice of the Motion or the hearing thereon is required.
C. In the Motion, the Debtors moved this Court for entry of an Order pursuant to Bankruptcy Rule 9019 approving a settlement and compromise of disputes.
D. The legal and factual bases set forth in the Motion establish cause for the relief requested. The settlement reflected in the settlement agreement (the “Settlement Agreement”), as set forth in the Motion,[1] is fair and reasonable under the circumstances, and is in the best interest of the Debtors, their estates and creditors.
E. The settlement reflected in the Settlement Agreement is the product of arms’ length, good faith negotiations between the Parties.
NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREEDTHAT:
1. The Motion of the Debtors is hereby granted in all respects; this Order constitutes a Final Order within the meaning of 28 U.S.C. § 158(a); and the provisions of this Order are non-severable and mutually dependent.
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2. All objections, if any, to the Motion or the relief requested therein, that have not been withdrawn, waived or settled, and all reservations of rights included therein, are overruled.
3. The Settlement Agreement is hereby approved.
4. The Debtors are authorized and directed, pursuant to Bankruptcy Rule 9019 and Section 105 of the Bankruptcy Code, to execute, deliver, implement, and fully perform any and all obligations, instruments, documents and papers and to take any and all actions reasonably necessary or appropriate to timely consummate the settlement reflected in the Settlement Agreement, and to perform any and all obligations contemplated therein immediately upon entry of this Order.
5. This Court shall retain jurisdiction over any and all disputes arising under or otherwise relating to the construction, performance, and enforcement of the terms of this Order and the terms and conditions of the Settlement Agreement as are hereby authorized and/or approved.