Case No. 02-13533-AJG, (Jointly Administered).United States Bankruptcy Court, S.D. New York.
November 15, 2005
STINSON MORRISON HECKER LLP, Washington, DC, Mark A. Shaiken, Esq., Marc E. Albert, Esq., Lucy Holmes Plovnick, Esq., Attorneys for the Reorganized Debtors.
STATE OF CONNECTICUT DEPARTMENT OF REVENUE SERVICES RICHARD BLUMENTHAL ATTORNEY GENERAL, Denise S. Mondell, (DM-8434), Assistant Attorney General Office of the Attorney General, Hartford, CT, Counsel to the State of Connecticut, Department of Revenue Services.
STIPULATION AND AGREED ORDER RESOLVING CLAIM 34777
ARTHUR GONZALEZ, Bankruptcy Judge
This Stipulation and Agreed Order (“Stipulation”) is made as of this 24th day of October, 2005, by and between MCI, Inc. and certain of its direct and indirect subsidiaries (collectively, the “Reorganized Debtors”), and the State of Connecticut, Department of Revenue Services (“Connecticut”), by their respective undersigned counsel.
Pursuant to this Stipulation, the Reorganized Debtors and Connecticut hereby agree and stipulate as follows:
RECITALS
WHEREAS, on July 21, 2002 (the “Commencement Date”) and November 8, 2002, WorldCom, Inc. and certain of its direct and indirect subsidiaries (“Debtors”) commenced cases under chapter 11 of title 11 of the United States Code (the
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“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. During the chapter 11 cases, the Debtors operated their businesses and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.
WHEREAS, On October, 31, 2003, this Court entered an order confirming the Debtors’ Modified Second Amended Joint Plan of Reorganization Under Chapter 11 of the Bankruptcy Code (the “Plan”).[1]
WHEREAS, On April 20, 2004, the Plan became effective in accordance with its terms, and pursuant to the Plan, WorldCom, Inc. merged with and into MCI, Inc. with MCI, Inc. being the survivor.
WHEREAS, On March 28, 2003, Connecticut filed amended proof of claim 34777 asserting audited corporate tax liability against MCI Worldcom Network Services, Inc. for the period December 31, 1988 through December 31, 1996.
WHEREAS, Connecticut has determined that the liability asserted in claim 34777 relating to the IRC section 338(h)(10) election was made in error, so that the claim should be reduced from $5,409,253 to $14,110.
WHEREAS, the Reorganized Debtors have agreed to pay the reduced amount of claim 34777.
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:
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1. Claim 34777 is deemed amended and allowed as a priority tax claim pursuant to § 507 of the Bankruptcy Code in the amount of $14,110.
2. The parties agree that payment will be made in accordance with the settlement outlined herein by making payment to the Connecticut Department of Revenue and sending it to: Denise S. Mondell, Assistant Attorney General, 55 Elm Street, Hartford, CT 06106 on or before October 26, 2005.
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3. Connecticut agrees that payment of the amount in accordance with the terms outlined herein constitutes complete satisfaction of claim 34777 and agrees not to file any amendment of claim 34777 or to file any new claims or amend any existing claims to assert liability for any period ending on or before the Commencement Date.
IT IS SO ORDERED.
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