Citi Settles Enron Suit for $1.66B

[flashl]

Source: AP

NEW YORK (AP) — Citigroup Inc. agreed Wednesday to pay $1.66 billion to creditors of Enron Corp. who lost money when the energy trader collapsed in 2001.

Citigroup was the last remaining defendant in what was known as the "Mega Claims" lawsuit, a bankruptcy suit filed in 2003 against 11 banks and brokerages. The filer, called Enron Creditors Recovery Corp., alleges that with the help of banks like Citigroup, Enron kept creditors in the dark about the company's financial troubles by using shady accounting.

Wednesday's settlement — plus previous bank settlements and Enron's subsequent release of $1.7 billion held in reserves — gives those creditors more than $5 billion, Enron said. That amounts to 37.4 cents on each dollar the creditors had tied up in Enron, according to Enron.

Citi, which denies any wrongdoing, had been trying to get the creditors suit tossed out. Enron's creditors — which include individual employees and small companies who lent Enron money — had filed claims against Citi that could have potentially totaled about $21 billion.

AP

Read more: http://ap.google.com/article/ALeqM5gebmOc2OFUHOwT-uGiJCF_y5jehAD8VLBRMG0

[Hannah Bell]

1. Funny how the same names come up, over & over.

Citi was a player in Enron; currently in the mortgage/derivatives meltdown.

[flashl]

2. Yep, same names ...

"That shareholder suit has pulled in more than $7 billion from companies including Citi, Bank of America Corp. and JPMorgan Chase & Co., and as of January planned to pay out stockholders $6.79 per share of common stock and $168.50 per share of Enron's stock-like preferred shares, according to a mailing to Enron investors."

[jwirr]

3. That is nice to know. They called me yesterday to threaten me

for some very old debt that was settled years ago. I should have told them to go to hell.