Enron workers and retirees will receive $133.95 million that will be distributed through the company's retirement plans, according to the Labor Department.
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Get Your Report Now!The major portion of the cash total, $124.6 million, represents proceeds of the sale of the Enron Corp. bankruptcy claim to Bear Stearns Investment Products, Inc.,
Enron paid the remaining $9.33 million earlier this month as a distribution for part of the bankruptcy claim.
On June 26, 2003, the department sued Enron, its board of directors, Kenneth L. Lay, Jeffrey K. Skilling, the Enron officers, and the plans' administrative committees, saying they failed to consider the prudence of Enron stock as an appropriate investment for the retirement plans and did nothing to protect the workers and retirees from extensive losses.
The bankruptcy claim is the result of a September 2005 settlement between Enron, the department, the retirement plans, and private plaintiffs in the bankruptcy case. The sale of the bankruptcy claim increases the cash available for distribution to participants in Enron's retirement plans.
The Labor Department previously announced an $86.85 million settlement with Enron officers and fiduciaries who served on the plans' administrative committee. Appeals are still pending in connection with that settlement. Subject to resolution of the appeals, the sale of the bankruptcy claim increases the total amount paid in this case for the Enron retirement plans to more than $220.8 million, minus attorneys' fees and expenses.