WCC Stone & Webster Inc. Bankruptcy and Conditional Relief from Stay Memorandum - October 26, 2001

MEMORANDUM NO. 2001-09

We are in receipt of a copy of the United States Bankruptcy Court for the District of Delaware's July 11, 2001, ORDER UNDER 11 U.S.C. §§ 105 AND 363, AND BANKRUPTCY RULE 9019 APPROVING SETTLEMENTS AND PAYMENT OF CERTAIN POST-PETITION CLAIMS. In that Order the Judge has rendered what we believe is a relief from the automatic stay provisions of federal bankruptcy law where certain conditions are met.

Particularly, I call your attention to paragraphs #3 and 4 of the Order. These paragraphs provide:

3. Liberty Mutual is authorized to settle all worker's (sic) compensation claims without any further approval from this Court that arise from Insurance Policies purchased by Northeast Utilities from Liberty Mutual and that name SWEC [Stone Webster Engineering Corp.] as the insured provided that the settlement of such claim does not require any financial contribution by any of the Debtors.

4. Liberty Mutual is further authorized to pay all such settlements in accordance with their terms, provided however that such terms do not require any financial contribution by any of the Debtors.

For your convenience a copy of the Order is attached.

If you are a party to a Workers' Compensation claim involving Stone and Webster and (1) believe that a hearing is necessary and (2) assert in good faith that the conditions referred to in the above-referenced Order permit a hearing to go forward, then please complete and file a hearing request in the appropriate district office.

[NOTE: This web page does not include the Order that was sent with the originally-mailed version of this memorandum. To obtain a copy of that Order, please call the Commission's Education Services at 1-800-223-WORK (toll-free in Connecticut) or (860) 493-1500.]