Creditors Object to Enron Plan

[Khephra]

HOUSTON -- The two largest creditors of Enron Corp. are objecting to proposals in a Chapter 11 bankruptcy reorganization plan by the failed energy giant.

Shareholders would get nothing and most creditors less than 20 cents of each dollar on the debts the company holds, under the plan to be considered in April.

Citibank and J.P. Morgan Chase & Co. said in filings Wednesday that the company's plan isn't in the best interest of creditors. Lawyers for the two companies said some with claims against Enron would have been better off if the company had liquidated under Chapter 7.

In its bankruptcy plan, Enron has placed the banks' claims back in the line of creditors and has sued the banks for compensation for their alleged roles in deals that hurt the company.

About a dozen other creditors have filed opposition to the plan.

more..............

http://www.newsday.com/business/nationworld/wire/sns-ap-enron,0,3873992.story?coll=sns-ap-business-headlines

[SoCalDem]

1. Hey.. I'll settle MY debts at 20 cents on the dollar

where do I sign up :)

[Barrett808]

2. Rather cheeky, given Citibank's and J.P.M.C.'s complicity in the frauds

Chutzpah.