Enron payout may be underpowered

[Robbien]

ENRON, which filed the second-biggest bankruptcy in US history, may pay less than half of what the company promised under a plan to exit bankruptcy when it makes its first distribution to creditors.

Most creditors would get about US20c in the dollar under terms of the plan. The company might pay less than that amount when it made its first distribution to creditors, as it negotiated resolution of billions of dollars in disputed claims, Robert Bingham, Enron's associate director of restructuring, said yesterday.

. . .

Enron proposes to give creditors, such as Citigroup and JP Morgan Chase, more than $US7.4 billion ($10.7 billion) in cash. They would also get stock in remaining businesses, valued at $US3.7 billion, and whatever proceeds the company received from lawsuits filed against former banks, law firms and other business partners.

The distribution amounts were based on about $US60 billion in undisputed claims filed against the company, Mr Cohen said.

http://www.theaustralian.news.com.au/common/story_page/0,5744,9746183%255E643,00.html

this is in the australian news, but no word of it in the US news. The US news keeps reporting how the defendants are wailing about not being told about testimony which could be in their favor.

[cornermouse]

1. Thieves to the end.

It figures.

[Joanne98]

2. Ah-nold's been a big help

Damn the stupid celebrity lovers.