Verizon Communications Inc., the country's largest local phone company, has agreed not to oppose WorldCom Inc.'s reorganization plan.
As part of the agreement stipulated in court documents, WorldCom will pay Verizon $60 million to settle some claims, if the reorganization plan is confirmed, according to Reuters News Agency.
Verizon has criticized WorldCom over an accounting scandal, which forced the WorldCom to file the largest bankruptcy in U.S. history.
WorldCom has reached a $750 million settlement agreement with the Securities and Exchange Commission.
WorldCom anticipates emerging from bankruptcy this fall.
In a reorganization plan filed with the bankruptcy court in April, WorldCom said it expected to exit bankruptcy with $1 billion in cash and $4.5 billion to $5.5 billion in debt.
WorldCom has unofficially changed its corporate name to MCI.
