Since November 2004, Enron Creditors Recovery Corp. ("ECRC") has returned approximately $21.738 billion in semi-annual distributions to creditors. There are a limited number of pending litigation and collection matters and contingent liabilities that continue to affect the timing of the closure of the Enron bankruptcy case. The Reorganized Debtors recently settled litigation in which defendants (both of whom were obligated to share recoveries with the Reorganized Debtors) previously received summary judgment in the United States District Court for the Southern District of New York (the “District Court”), referred to as the “Bammel Litigation.” The Reorganized Debtors have also settled litigation with the Lay Estate, subject to mutually acceptable documentation and any court approvals required. In addition, on March 31, 2011, the District Court entered an order affirming on appeal the denial by the Bankruptcy Court of a motion filed by National City Bank (“NCB”) which would have required the payment of certain additional monies in the approximate amount of $8.6 million to creditors holding the Allowed ETS Debenture Claim under an agreement which NCB purports to provide most favored nations status in these particular circumstances which the Reorganized Debtors have opposed.
The distribution payments to date represent returns to ECRC’s creditors that are greater than 300% of Company’s original estimates.
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