Enron finally agrees to pay up

Enron finally agrees to pay up

Enron Corporation has finally agreed to settle up all civil claims of price gouging and energy market manipulation in Western states. This settlement can cost the company from around USD 250 million to USD 1.5 Billion. It all depends upon the assets of the company which would be divvied up among creditors in the company’s bankruptcy proceedings.

This settlement offer would still require the approval from the Federal Energy Regulatory Commission. It calls for the state of California and several utility companies there to receive an $875 million unsecured claim in the Enron bankruptcy. This information has been provided by the California Attorney General’s office.

Their have been a total of around USD 63 Billion worth of cases filed against this company in the bankruptcy proceeding. However, they just have around USD 13 billion worth of assets. Enron itself has said in a statement: “Enron has not admitted to any wrongdoing with respect to any matter covered in this settlement”. Enron had collapsed in 2001 after it emerged that it had hidden huge debts.

“All things considered, this is a good resolution for the state’s ratepayers,” said Bill Lockyer, California’s attorney general. “Settlements such as this one allow us to remove claims against the estate, so that we can accelerate distributions to all other creditors,” said Stephen Cooper, Enron’s interim chief executive, of the settlement.