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AOL settles case with WorldCom

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CIOL Bureau
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WASHINGTON: AOL Time Warner will pay almost $15.9 million to bankrupt WorldCom Inc. to settle a dispute over amounts the two owe each other under network services and advertising agreements, according to a settlement approved in court on Tuesday.



AOL owed about $28.9 million to WorldCom for network services while the telecommunications provider owed about $13 million for advertising, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York. The two companies agreed to settle the dispute and AOL would pay WorldCom $15.9 million, according to the court-approved settlement.



WorldCom, the No. 2 U.S. long-distance telephone provider and one of the biggest movers of Internet traffic, filed for the world"s largest bankruptcy in July 2002, with some $41 billion in liabilities. The two sides are still squabbling over another $80 million WorldCom claims AOL, the largest U.S. Internet services provider, owes for network services provided before the bankruptcy filing was made, according to the agreement.



The bankruptcy court also on Tuesday approved a settlement reached between WorldCom and a unit of SBC Communications Inc. involving pay phones at certain correctional institutions and youth camps in California. Pacific Bell, the SBC unit, will transfer the payphones over to WorldCom and pay about $2.6 million, according to the settlement.



© Reuters

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