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Enron's official unsecured creditor's committee opposes extending examiner
By Jeff Pines
Washington, Sept. 21 - Enron Corp.'s official committee of unsecured creditors added its voice in opposing extending the term of Enron North America Corp.'s examiner's term beyond the effective date of the company's reorganization plan. Baupost Group LLC and Racepoint Partners LP also filed an objection Monday.
The committee filed its paperwork with the U.S. Bankruptcy Court for the Southern District of New York Monday.
Harrison Goldin was appointed examiner for Enron North America and has asked that his term be extended after the effective date of the company's reorganization plan.
According to the committee, Goldin was appointed because the creditors did not trust the management that sank the company to safeguard their interests in a recovery.
"Fears of postpetition corporate raiding by the marauding parent company of the then-perceived 'jewel' of the Enron crown motivated creditors to hotly contest asset sale, cash management, and debtor-in-possession financing hearings," the committee said.
But the record shows Enron's management never put its subsidiary's assets into jeopardy. Further investigation has shown that Enron North America's value was not as great as originally thought, the committee said.
So from its position, the examiner is no longer needed.
The committee recommended the court look at Goldin's request for an extension "as if it were a new request." Doing so would show extending his role might threaten the equilibrium reached through the reorganization plan, the committee said.
Enron filed for bankruptcy on Dec. 2, 2001. Its Chapter 11 case number is 01-16034.
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