Enron North America examiner rebuts committee, Baupost objection to his continuing role

By Jeff Pines

Washington, Sept. 29 - Enron North America Corp.'s examiner, Harrison Goldin, rejected criticism from Enron Corp.'s official committee of unsecured creditors and the Baupost Group LLC and Racepoint Partners LP that his role should end with the confirmation of the reorganization plan.

The response was filed with the U.S. Bankruptcy Court for the Southern District of New York on Tuesday.

Contrary to what has been said, Goldin's continuing role is supported by three pleadings, which Goldin said represents a multitude of creditors.

His continuing role is not about money, which the creditors' committee and Baupost contend, but about liberating them from examiner oversight, he said.

According to Goldin, the company, Baupost and the committee were on the opposite side of the table when he negotiated a global compromise.

"As a distressed investor accumulating ENE [Enron Corp.] claims during the bankruptcy cases, it continually expressed vehement displeasure that ENA's examiner negotiation of a global compromise was hurting its investment strategy in ENE by enhancing ENA recoveries," Goldin said.

Among the key issues remaining are whether Enron's financial adviser will get its multi-million dollar bonus with Enron North America paying a portion even if the bonus is for work mostly done for Enron Corp and not Enron North America.

A Sept. 30 hearing is scheduled.

Enron, a Houston-based energy company, filed for bankruptcy on Dec. 2, 2001. Its Chapter 11 case number is 01-16034.

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