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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2714)	7/11/2003 8:06:37 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 3602

Most Enron Creditors to Get 14.4 to 18.3 Cents on Dollar story.news.yahoo.com Fri Jul 11,12:28 AM ET Enron Corp.'s bankruptcy, perhaps the most celebrated corporate flameout in recent years, is also likely to be one of the costliest for creditors, The Wall Street Journal reported Friday. A reorganization plan expected to be filed Friday calls for most creditors, who are owed an estimated $67 billion, to be paid between 14.4 cents and 18.3 cents on the dollar. That's far below the average corporate bankruptcy recovery and about half of the targeted return for most creditors of WorldCom Inc., the only bankruptcy bigger than Enron's. Stephen Cooper, Enron's acting chief executive, said in an interview that the payout was nevertheless more than what many people had initially expected. "When you look at how much fluff was in Enron's balance sheet, this is actually very good," he said. "It's a hell of a lot better than zero, which is what some of the creditors believed they were looking at a year ago." Still, the paltry recovery comes amid a disastrous two-year run for lenders and bond investors, who have been snared in an unprecedented wave of large corporate bankruptcies. On average, creditors of bankrupt companies have fared worse in this period than at any point in the past two decades, dragged down in part by failed telecommunications firms, which in some cases left absolutely nothing for creditors. The Chapter 11 restructuring of Enron, whose controversial 2001 collapse became a symbol of corporate malfeasance, has dragged on for 19 months, generating more than 11,000 court filings and nearly $500 million in professional fees. The reorganization plan, to be filed in New York federal bankruptcy court Friday, will map out how Enron plans to divvy up among creditors its pool of remaining assets, which will consist of cash from asset sales and contract settlements, and stock in surviving companies. Enron estimates that 70% of the distribution will be in cash, Mr. Cooper said. -- Mitchell Pacelle, staff reporter of The Wall Street Journal, contributed to this article.