Enron, Dynegy Reach $44M Settlement

Law360, New York (October 6, 2006, 12:00 AM EDT) -- A subsidiary of energy company Dynegy Inc. has agreed to pay former rival Enron Corp. $44 million in order to settle the long-running litigation between the two companies.

Dynegy Holdings Inc. will make the payment to the bankrupt energy giant, bringing an end to a dispute begun in 2001 over a “master netting” agreement.

Master netting agreements let companies offset losses from negative transactions with gains from positive deals. The two companies had an agreement whereby amounts owed to Enron by Dynegy would be set off...
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