Judge OKs Settlement For Enron's Deferred Payments

Law360, New York (May 24, 2006, 12:00 AM EDT) -- More than two dozen former employees of Enron Corp., who received millions of dollars in accelerated deferred salary payments just before the energy giant went bankrupt, will pay $21.1 million to Enron’s creditors under a court-approved settlement.

The settlement was a victory for Enron’s employee committee, which argued in a November 2003 lawsuit that the defendant former employees were unsecured creditors of Enron under U.S. Bankruptcy Code and were therefore not entitled to preferential payments.

The settlement was reached in March between the committee and 27...
To view the full article, register now.