Enron’s Employee Committee Reaches Settlement for an Additional $21.1 Million to Creditors

Kronish Lieb’s Bankruptcy & Restructuring Group, which has been representing the Employee Committee of Enron, continues to pursue the reimbursement of accelerated deferred compensation made to select top hat employees of Enron in the month before the company’s bankruptcy filing.

On Thurs., May 18, Judge Arthur J. Gonzalez of the United States Bankruptcy Court for the Southern District of New York, approved a settlement resulting from a suit on behalf of the Enron estate involving 27 defendants. The settlement nets the estate an additional $21.1 million, comprised of $15.7 million in cash repayment and an additional $5.4 million through a waiver of claims. The latest settlement benefits the debtors’ estate and its creditors, including Enron employees as creditors of the estate.

To date, the Employee Committee has secured settlements with 104 top hat defendants for a net benefit to the Enron estate exceeding $36 million. “We are gratified that this latest settlement will help offset some of the losses sustained by the rank and file employees hurt by the Enron collapse,” said Bankruptcy & Restructuring partner James Beldner.

The Bankruptcy & Restructuring team representing the Enron Employee’s Committee is led by Mr. Beldner and partner Ronald Sussman.

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