August 5, 2005

Enron Corp. announced today that it reached an agreement with Canadian Imperial Bank of Commerce (CIBC) to settle CIBC’s portion of the Enron MegaClaims litigation.  According to the terms of the agreement, CIBC will pay Enron $250 million in cash and fully subordinate approximately $40 million in claims held by the bank. CIBC also agreed to pay Enron $24 million to permit Enron to allow approximately $80 million in claims transferred by CIBC to third parties.

“We are pleased that, to date, Enron has reached agreements in the MegaClaims litigation that have added approximately $300 million in cash to the estate,” said Stephen Cooper, Enron’s interim CEO and chief restructuring officer

“The CIBC agreement represents a tremendous benefit to the Estate and we look forward to successfully resolving the remaining claims,” noted John J. Ray III, Enron’s Board Chairman

Financial institutions still to settle include Barclays PLC; Citigroup Inc.; Credit Suisse First Boston, Inc.; Deutsche Bank AG; J.P. Morgan Chase & Co.; Merrill Lynch & Co., Inc.; and The Toronto–Dominion Bank.  Enron’s complaint includes claims that the banks aided and abetted breaches of fiduciary duties; aided and abetted fraud; and engaged in civil conspiracy.  The suit also includes bankruptcy-based claims relating to equitable subordination; preferential and/or fraudulent transfers; and the re-characterization of certain transactions.

The agreement, which resolves all open issues between Enron and CIBC, remains subject to the approval of the United States Bankruptcy Court for the Southern District of New York.

Enron is represented in this matter by Susman Godfrey LLP; Togut, Segal & Segal; and Venable LLP. 

Enron’s Internet address is www.enron.com.