ARTHUR J. GONZALEZ, United States Bankruptcy Judge
This Stipulation and Order (the "Stipulation") is made as of this 2nd day of June, 2003, by and between WorldCom, Inc. ("WorldCom") and certain of its direct and indirect subsidiaries, as debtors and debtors in possession (collectively with WorldCom, the "Debtors" and individually a "Debtor") and John E. Green, Co. (the "Claimant"), by their respective undersigned counsel.
Pursuant to this Stipulation, the Debtors and Claimant hereby agree and stipulate as follows:
RECITALS
WHEREAS, on July 21, 2002 and continuing thereafter (the "Commencement Date"), 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, by order dated October 29, 2002, the Court entered an order establishing January 23, 2003 as the deadline for the filing of a proof of claim against any of the Debtors (the "Bar Date").
WHEREAS, on or about July 1, 2002, Claimant filed its Claim of Lien (the "Construction Liens") with the Oakland County (Michigan) Register of Deeds to perfect its claim against the Debtor based on labor or materials it provided for the Debtor;
WHEREAS, Claimant did not file a formal proof of claim on or before the Bar Date;
WHEREAS, on or about March 12, 2003, Claimant filed its Notice to Continue Perfection of Lien (the "Perfection Notice") with respect to the Construction Liens, reflecting the amount of $329,529.29 as the remaining amount of Construction Liens after applying any partial release and discharge of lien;
WHEREAS, on or about May 1, 2003, Claimant filed its Motion For An Order To Recognize An Amendable Informal Proof Of Claim, seeking to have the Construction Liens or the Perfection Notice to be deemed to be a timely filed informal proof of claim (the "Late Claim Motion").
WHEREAS, on or about May 1, 2003, Claimant filed its Motion For Relief From The Automatic Stay seeking relief to commence an action in state court to enforce the Construction Liens against the Debtor (the "Lift Stay Motion").
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:
1. The Parties agree that the Perfection Notice constitutes an informal proof of claim. Accordingly, the Late Claim Motion shall be deemed granted. The Claimant may file a formal proof of claim incorporating the Perfection Notice ("Claimant's PoC"), and it shall be deemed timely-filed.
2. The Debtors and Claimant acknowledge and agree that, pursuant to section 546(b) of the Bankruptcy Code, Claimant has properly perfected and continued the perfection of its Construction Liens and security interest arising thereunder against the Debtors by filing the Perfection Notice with this Court. Accordingly, the Claimant's PoC shall be deemed secured without the need for Claimant to commence legal proceedings to enforce the Construction Liens (the "State Court Action").
3. Debtors and Claimant acknowledge and agree that the relief requested in the Claimant's Lift Stay Motion shall be deemed denied without prejudice.
4. The Debtors reserve their right to object to validity, priority, extent, and/or the amount of the Claimant's PoC on any ground, to include the Claimant's failure to timely and properly file a Claim of Lien in accordance with Michigan state law, provided however, that such objection shall not be based upon the absence of Claimant's State Court Action with respect to the deemed secured PoC.
5. Nothing in this Stipulation shall be construed to constitute a waiver or modification of the protections afforded to the Debtors pursuant to section 362 of the Bankruptcy Code.
6. This Stipulation shall become effective and binding as of entry of this Stipulation on the docket as "so ordered" by the Court. In the event that this Stipulation is not approved by the Court, it shall be null and void and have no force or effect and the parties agree that, in such circumstances, this Stipulation shall be of no evidentiary value whatsoever in any proceedings.
IT IS SO ORDERED.