As of July 16th, 2004 the company that will be formerly named Enron, will be operating under a court approved Chapter 11 plan as two separate
entities. After revealing that the failing company was worth only about half of the claimed 63 billion dollars in 2001, and selling much of their
assets under court protection, the company will be allowed to re-surface.
Part II of this saga begins with the numbers...
will be settled with approximately 14.4 to 18.3 cents on the dollar.
will receive $ zero
for their investments.
Accountants, lawyers and other professionals
will receive $702 Million
in fee's and services.
It is apparent who the winner's are in this troubled company's demise.
Claims against the company will amount to nearly $63 billion, according to Stephen F. Cooper, a turnaround expert serving as acting chief executive,
while Enron has on hand about $12 billion in cash and equity in its Prisma Energy International Inc. unit. Enron did not set a time frame for when
payments to creditors would come because there are still tax and legal issues to be ironed out.
As part of the reorganization, Enron's name will disappear, along with its now infamous "crooked E" logo. But Cooper said the bankrupt company's
estate will proceed with lawsuits against investment banks and former executives accused of playing a role in the firm's demise. Any financial
settlements those cases might generate would be shunted to creditors.
Meanwhile, other industries continue to suffer from the effects of Enron's downfall. Citigroup Inc. said yesterday that its net income for the second
quarter fell 73 percent after taking a $4.95 billion charge against earnings for lawsuits related to its dealings with Enron and WorldCom Inc.
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It is a real shame that the only persons who were able to 'recover' any funds or investments from this, will be the lawyers and bankruptcy service
provider's. The bankruptcy examiner company themselves, will receive about $90 million
for their services. The shareholder's took the largest
load of the whole corporate scandal with returns of nothing for their efforts and trust in their investments.
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[edit on 16-7-2004 by smirkley]
[edit on 7-16-2004 by Valhall]