Enron, Banks Must Mediate Holder Suits, Judges Say

NEW YORK -- Enron Corp., J.P. Morgan Chase & Co., Citigroup Inc. and other banks must enter mediation with investors seeking $30 billion over the collapse of the Houston-based energy company, two U.S. judges said, Bloomberg News reported Wednesday.

U.S. Bankruptcy Judge Arthur Gonzalez and U.S. District Judge Melinda Harmon said in a joint hearing Wednesday held simultaneously in Manhattan and Houston that the cases should be settled.

Harmon said attempts to settle legal claims against Enron and the banks “would benefit through the mediation process at this time.''

Harmon is presiding over the shareholder suits in Houston. Gonzalez is overseeing Enron's bankruptcy reorganization in New York.

-- NYSSCPA.org News Staff

Posted on 05/29/03