Credit Suisse To Pay Enron Estate $90m

by Glen Shapiro, LawAndTax-News.com, New York

23 May 2006

Enron announced earlier this month that it has reached an agreement with Credit Suisse Securities (USA) LLC, formerly known as Credit Suisse First Boston LLC, to settle 'MegaClaims' litigation in the Enron bankruptcy case.

Under the terms of the settlement, CSFB will pay Enron $90 million.

The settlement further provides that approximately $337 million in claims against the Enron estate held by CSFB will be subordinated and receive no distribution from the Enron estate, and approximately $92 million in CSFB claims will be allowed.

Enron explained in a statement that:

"The settlement reflects that CSFB was involved in fewer transactions with Enron than certain of the other MegaClaim defendants. CSFB did not admit liability or wrongdoing and both parties agreed to settle the litigation to avoid the costs and uncertainties of further proceedings."

"This settlement is further evidence of the proactive steps we continue to take to resolve the myriad of issues with respect to the Enron estate," announced John J. Ray III, Enron's President and Chairman of the Board, continuing:

"We are gratified with the progress we have made to date in the MegaClaims litigation and remain eager to reach resolution with the remaining financial institutions."

Remaining MegaClaim defendants include Citigroup Inc., Deutsche Bank AG, Barclays PLC, Fleet National Bank and Merrill Lynch & Co.

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