Court Approves ECRC's Settlement With Citigroup In Megaclaims Litigation

Approval will enable Enron Creditors Recovery Corp. to return billions to creditors

April 24, 2008

The United States Bankruptcy Court for the Southern District of New York today issued a ruling approving Enron Creditors Recovery Corp.’s settlement with Citigroup in connection with the MegaClaims litigation. 

Under the terms of the settlement, which was reached March 26, 2008, Citigroup will pay Enron Creditors Recovery Corp. $1.660 billion. Citigroup further agreed that indemnification claims (as to which the Bankruptcy Court established a $4 billion claim reserve) and an additional $249.4 million of claims against the Enron Estate held by Citi will be waived. Claim holders of the six Yosemite/CLN Trusts will be allowed claims in the amount of $2,413.8 million (against ENA and a guaranty claim against ENE) and $28.6 million against ENE. In addition to the cash settlement of $1.660 billion, the settlement will release approximately $1.7 billion of cash held in a disputed claims reserve, which will be included in a special distribution to creditors in the near term. 

“The settlement with Citigroup marks an important milestone in winding up the Enron Estate, and we are pleased that today the court approved the settlement,” said John Ray III, Enron Creditors Recovery Corp.’s President and Chairman of the Board.  “Upon implementation of the settlement, the Enron estate expects to return approximately $5 billion to creditors, which brings us to nearly $20 billion in total returned to creditors.”

The MegaClaims suit was filed in 2003 by Enron Creditors Recovery Corp. against eleven global banks and today’s approval of the Citigroup settlement brings this effort to a successful close. 

For more information on Enron Creditors Recovery Corp. please visit

Enron Creditors Recovery Corp. is represented in this matter by Klee, Tuchin, Bogdanoff & Stern LLP and Crowell & Moring.

Enron’s website address is

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