Enron pays back $3.4 billion more to its creditors
04 October 2006
Mumbai: Bankrupt energy giant Enron Corporation has distributed $3.37 billion more to creditors, consisting of $3.34 billion in cash and shares of Portland General Electric Co. (PGE) worth some $34 million. This brings the total distribution to creditors to $9.39 billion since November 2004.
"The total amounts distributed with respect to Enron Corporation and Enron North America Corporation represent a return to creditors to date of 26 per cent and 29 per cent, respectively, compared to disclosure statement estimates of 17.4 per cent and 20.1 per cent," said John Ray, president, Enron and chairman of the board.
The PEG shares distributed total 27.9 million, or about 47 per cent of the company's outstanding shares. The remaining shares will be held by the disputed claims reserve, which is not affiliated with Enron.
The Houston, US-based Enron was declared bankrupt in 2001, costing thousands of jobs and millions of dollars in losses for investors after investigators uncovered accounting frauds that concealed billions of dollars of debt.
Former Enron chief financial officer Andrew Fastow was sentenced to six years in prison on September 27, more than two and a half years after pleading guilty for his role in Enron's collapse.