Case No. 02-13533 (AJG), (Jointly Administered).United States Bankruptcy Court, S.D. New York.
January 24, 2005
Mark A. Shaiken, Esq., Andrew Muller, Esq., STINSON MORRISON HECKER LLP, Kansas City, MO, Attorneys for Debtors and Debtors in Possession
Howard B. Kleinberg, Esq., Meyer, Suozzi, English Klein, P.C. Mineola, NY.
THIRD JOINT STIPULATION REGARDING TOLLING AGREEMENT TO BRING CLAIM OBJECTIONS
ARTHUR GONZALEZ, Bankruptcy Judge
This Second Joint Stipulation Regarding Tolling To Bring Claim Objections (the “Agreement”) is made and entered into by and among the following: MCI, Inc. (successor to WorldCom, Inc.) and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively, the “Debtors”) and Verisign, Inc., and Illuminet, Inc. (collectively the “Claimants”) (the Claimants and the Debtors are hereinafter collectively referred to as the “Parties.”) with reference to the following:
1. On July 21, 2002 (the “Commencement Date”) and November 8, 2002, WorldCom, Inc. and certain of its direct and indirect domestic subsidiaries commenced cases (the “Bankruptcy Cases”) under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). By Orders dated July 22, 2002 and November 12, 2002, the Debtors’ chapter 11 cases were consolidated for procedural purposes only and are being jointly administered.
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2. On October 31, 2003, the Debtors’ Modified Second Amended Joint Plan of Reorganization (the “Plan”) was confirmed. The Plan became effective on April 20, 2004.
3. On November 21, 2002, the Debtors filed their Schedules of Liabilities (as amended and supplemented, the “Debtors’ Schedules”) and their Schedules of Executory Contracts and Unexpired Leases. On December 5, 2002, the Debtors filed their Statements of Financial Affairs.
4. On October 29, 2002, this Court entered its Order (a) Pursuant to Bankruptcy Rule 3003 (c)(3) Establishing the Deadline for Filing Certain Proofs of Claim and Approving the Form and Manner of Notice Thereof (the “Bar Date Order”). The Bar Date Order established January 23, 2003 as the bar date (the “Bar Date”) for filing proofs of claim in these cases. Pursuant to the terms of the Bar Date Order, on or about November 22, 2002, the Debtors mailed notice of the bar date (the “Bar Date Notice”) to in excess of 1.2 million creditors and potential claimants.
5. On March 25, 2003, the Court entered its Order Pursuant to 11 U.S.C. § 105 Approving Notice Procedures Regarding Claim Objections and Deemed Schedule Amendment Motions (“Claim Objection Procedure Order”), approving certain procedures regarding noticing of claims objections and omnibus motions for deemed schedule amendments.
6. The Debtors have been engaged in the process of reviewing filed proofs of claim in these Chapter 11 cases (the “Proofs of Claim”).
7. The Claimants have filed one or more Proofs of Claims in the Bankruptcy Cases (collectively “Claimants’ Claims”).
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8. On October 15, 2004, by joint stipulation, (the “First Stipulation”) the Parties extended the deadline by which the Debtors were required to object to Proofs of Claim filed by Claimants.
9. Under the First Stipulation, the Debtors were required to object to Proofs of Claim no later than December 15, 2004 (the “Objection Deadline”).
10. On December 13, 2004, again by joint stipulation (the “Second Stipulation”) the Parties extended the deadline by which the Debtors were required to object to Proofs of Claim filed by Claimants.
11. Under the Second Stipulation, the Debtors were required to object to Proofs of Claim no later than January 15, 2005.
12. The Debtors continue to review Claimants’ Claims and have been in discussions with Claimants with respect to reconciling their respective books and records as to Claimants’ Claims and complicated potential issues of offset between the parties arising from, relating to, or impacting the amount and validity of, Claimants’ Claims (the “Offset Issues”).
13. To permit the Parties to have an opportunity to complete this reconciliation process, and thereby avoid potential unnecessary litigation with respect to the claims objection process the Parties hereby jointly agree to toll and extend the Objection Deadline by agreement through and including February 15, 2005 (the “New Deadline”).
14. The Parties agree that the Debtors shall have until the New Deadline to object to the Claimants’ Claims and seek a resolution of all issues respecting the Claimants’ Claims including the Offset Issues, whether such resolution is sought by claim objection or adversary proceeding.
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15. This agreement is without prejudice to the (a) Debtors to raise any and all grounds to object to the Claimants’ Claims prior to the New Deadline, and to seek to resolve the Offset Issues on any basis the Debtors deem appropriate, and (b) Claimants’ right to defend such actions on any basis other than the failure of the Debtors to bring such actions prior to the objection Deadline.
16. Any and all pending objections to any of Claimant’s Claims, and hearings scheduled with respect thereto, shall be adjourned to a mutually acceptable date subsequent to the New Deadline, including, without limitation, pending objections to claim numbers 13001, 22789, 34671,22780, and 34670.
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IT IS SO ORDERED.
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