When Enron Corp. filed for bankruptcy in 2001, it possessed substantial assets but even more substantial debts. In November 2004, the Company emerged from bankruptcy pursuant to a Bankruptcy Court approved plan of reorganization, and the new board of directors decided to rename the Company as Enron Creditors Recovery Corp. ("ECRC"). ECRC's sole mission is to reorganize and liquidate certain operations and assets of the "pre-bankruptcy" Enron for the benefit of its creditors.
When Enron initially emerged from bankruptcy, the estimated rate of return for creditors, contained in the Disclosure Statement related to the Plan of Reorganization, was approximately 17 cents on the dollar for Enron Corp. and 20 cents for Enron North America Corp. As a result of ECRC’s diligent efforts, the respective creditors of Enron Corp. and Enron North America Corp. have already received more than 36 cents on the dollar. This figure represents returns to creditors that are greater than 200% of the original estimate for Enron. Corp.'s creditors and 180% for creditors of Enron North America Corp.
As part of its mission to return money to the hands of innocent creditors, ECRC has pursued litigation against parties seeking to hold them financially accountable for the alleged wrongful acts that led to the collapse and insolvency of Enron. These pursuits have enabled such substantial returns to creditors thus far.
Additional details about each of these cases are available under the "Litigation Information" section.
Much of this litigation has been successfully completed, though certain others are still pending, including a multi-billion dollar suit against Citigroup.