Enron Reaches Settlement With Merrill Lynch in MegaClaims Litigation
Enron Corp. announced today that it has reached an agreement with Merrill Lynch & Co., Inc and affiliated entities (collectively "Merrill Lynch") to settle MegaClaims litigation in the Enron bankruptcy case. According to the terms of the agreement, Merrill Lynch will pay Enron $29.5 million. The settlement further provides that approximately $73.7 million in claims against the Enron Estate will be subordinated and receive no distribution from the Enron Estate and approximately $10 million in transferred claims will be allowed. The settlement reflects that Merrill Lynch was involved in fewer transactions with Enron than certain of the other MegaClaim defendants. Merrill Lynch did not admit liability or wrongdoing and both parties agreed to settle the litigation to avoid the costs and uncertainties of further proceedings.
"This settlement is a further proactive step in our efforts to settle the Enron Estate," said John J. Ray III, Enron's President and Board Chairman. "We are gratified with the progress we have made to bring the MegaClaims litigation with Merrill Lynch to a close and remain optimistic that the remaining financial institutions will put their Enron issues to rest."
Remaining MegaClaim cases include Citigroup Inc., Deutsche Bank AG, Barclays PLC, and Fleet National Bank.
The settlement remains subject to the execution of a definitive agreement and the approval of the United States Bankruptcy Court for the Southern District of New York.
Enron is represented in this matter by Susman Godfrey LLP; Togut, Segal & Segal; and Venable LLP.
Enron's Internet address is www.enron.com.
CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and other statements that are other than statements of historical facts. Forward- looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, political developments affecting federal and state regulatory agencies, and developments with respect to the bankruptcy of Enron. Except as required by law, Enron does not undertake any obligation to update any forward-looking statements.
Source: Enron
