12/12/2005
Bankruptcy Team Wins Additional $18 Million Recovery for Enron Employee Committee
In a 102-page Memorandum of Decision and Order dated December 9, 2005, the United States Bankruptcy court for the Southern District of Texas, Houston Division rendered a Final Judgment in favor of the Official Employement-Related Issues Committee of Enron Corp. (the "Employee Committee") against 17 former Enron executives to recover $18 million in preferential and fraudulently conveyed bonus payments made to Enron executives in the months immediately preceding Enron's bankruptcy filing.
This judgment is in addition to the approximate sum of $50 million already recovered by the Employee Committee through negotiation and litigation. These funds are specifically earmarked for those 4,500 employees who were fired without severance at the time of the Enron's filing of it's Chapter 11 case or immediately thereafter.
The Employee Committee is represented by Kronish Lieb Weiner & Hellman LLP, with bankruptcy partners James Beldner and Ronald Sussman leading the engagement together with the law firm of McClain Leppert and Maney, P.C. handling the case in Houston.
"On behalf of the Employee Committee, we are gratified by the measure of justice this decision represents and the dollars which will help offset some of the losses sustained by the rank and file employees hurt by Enron's collapse," said Mr. Sussman.