Enron Creditors to Get Less Than 20 Cents On Dollar

NEW YORK -- Enron has reached a tentative deal with creditors in bankruptcy proceedings that would give them less than 20 cents on the dollar, The Wall Street Journal reported Monday.

The company has asked the bankruptcy court in New York for a two-week extension to finalize the deal with creditors.

The Journal, quoting unnamed sources, said Monday the reorganization plan is expected to call for creditors to divide up proceeds from sales of numerous Enron assets and the settlement of certain energy-trading contracts, which has generated nearly five billion dollars for the bankruptcy estate.

In addition, creditors are expected to receive ownership stakes in the planned successor companies to Enron's scaled-down operations focusing on its pipelines, electric utility and international assets, the report said.

-- NYSSCPA.org News Staff

Posted on 06/30/03