Enron makes $1.8697 billion distribution to unsecured, guaranty creditors

By Caroline Salls

Pittsburgh, April 2 - Enron Creditors Recovery Corp. made its fifteenth distribution to creditors of Enron Creditors Recovery, formerly Enron Corp., and its affiliated debtor companies, with the latest distribution to holders of general unsecured claims and guaranty claims totaling $1.8697 billion, according to a company news release.

The $1.869 billion distribution consisted of $1.698 billion in cash and shares of Portland General Electric Co. stock valued at $171.7 million.

Since November 2004, Enron said it has returned $11.479 billion to creditors in twice-yearly distributions made in April and October, as well as in catch-up distributions paid on an interim basis every two months.

"Today's distribution is another significant milestone in the liquidation process and represents a tremendous financial outcome for the Enron estate," president and board chairman John Ray said in the release.

"The estate continues to focus on its principal mandate to sell remaining assets, settle claims and prosecute litigation, including the MegaClaims litigation against Citigroup and Deutsche Bank AG, the only remaining defendants. The trial on these fraud and bankruptcy claims is set to begin in January 2008."

Enron said this most recent distribution included 8.17 million shares of Portland General Electric, which, when added to previous distributions of 30.34 million shares and 12,643 Portland General Electric shares returned and held for further distribution, represents 62% of Portland General Electric's 62.5 million shares to be distributed by the Enron estate.

In addition, Enron said it has conducted a review by plan of reorganization class, and based on recent settlements and current projections, the company can release roughly 3.3 million shares that were previously reserved as part of this total distribution of shares.

However, the company said reserves vary by plan class, and accordingly, some creditors are receiving no additional Portland General Electric shares in the April 2007 distribution.

The remaining 23.98 million Portland General Electric shares will be held in a disputed claims reserve for future distribution to creditors of Enron in accordance with the Chapter 11 plan.

The disputed claims reserve currently consists of about $4.51 billion in cash and $503.7 million in plan value of Portland General Electric shares.

Enron is a Houston-based energy company that emerged from bankruptcy on Nov. 18, 2004.

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