A settlement of long-term disputes over billing and an outsourcing agreement between WorldCom Inc. and Electronic Data Systems Corp. (EDS) was approved Monday by a U.S. federal bankruptcy judge.
The agreement calls for Plano, Texas-based EDS to pay $187 million to WorldCom over the next 12 months and for changes to the Global Networking Outsourcing Agreement (GNOA) between the two companies. The proposed agreement was filed earlier this month with the U.S. Bankruptcy Court, Southern District of New York. Judge Arthur J. Gonzalez Monday approved the proposed deal.
The GNOA requires EDS to buy a minimum amount of services from the Clinton, Mississippi, telecommunications carrier each year or pay a shortfall payment, and establishes the rates that will be charged. EDS was to buy the services for itself and also to meet its customers' telecommunications needs. The two companies have been in dispute since 2000 over the minimums and charges, according to the settlement, which calls for both to be changed.
News source: IDG - Judge approves WorldCom, EDS settlement
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