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Administration April 7, 2006
Enron Looks to Delay Pension Plan Settlement Payout
July 28, 2004 (PLANSPONSOR.com) - Enron Corp. has
taken steps to block retirement plan participants from
getting any assets from a partial settlement.
Reported by Eric Hazard
The company argues the $85 million recently freed up by insurers to partially settle more than $3 billion in employee retirement fund claims belongs to Enron and should not be released to plan participants. With such a move, the company is hoping to stay any payout to Enron employees until after the Houston-based company emerges from bankruptcy, a move expected early next year, according to a Bloomberg news report.
“The proceeds of the policies are property of Enron’s Chapter 11 estate,” the filing with US Bankruptcy Judge Arthur Gonzalez in New York said.
Enron filed the delay request followingUS District Judge Melinda Harmon’s tentative approval of the settlement in May (See Settlements Reached in Enron Suits ). The final hearing is scheduled for August 19.
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