Opinion
Chapter 11 Case No. 01-16034(AJG), Jointly Administered.
February 22, 2002
ORDER AUTHORIZING DEBTORS TO PAY PREPETITION EMPLOYEE COMPENSATION, BENEFITS, REIMBURSABLE BUSINESS EXPENSES AND RELATED ADMINISTRATIVE COSTS
Upon consideration of the motion, dated February 20, 2002 (the "Motion"), filed by Enron Corp. and certain of its affiliated entities (collectively, the "Debtors"), as debtors and debtors in possession, along with Enron Wind Corp., Enron Wind Systems, Inc., Enron Wind Energy Systems Corp., Enron Wind Maintenance Corp., Enron Wind Constructors Corp., and EREC Subsidiary I, LLC, EREC Subsidiary II, LLC, EREC Subsidiary III, LLC, EREC Subsidiary IV, LLC, EREC Subsidiary V, LLC (collectively, the "Enron Wind Debtors" and, together with the Enron Debtors, the "Debtors"), as debtors and debtors in possession, seeking authority, in their discretion and in the exercise of their business judgment, to pay prepetition employee compensation, benefits, reimbursable business expenses and related administrative costs; and it appearing that the Court has jurisdiction to consider the Motion; and it appearing that the relief requested in the Motion is in the best interest of the Debtors, their estates and creditors; and it appearing that due notice of the Motion has been given and no further notice need be given; and upon the proceedings before the Court; and good and sufficient cause appearing;
1. The Motion is granted.
2. The Debtors are authorized, in the exercise of their business judgment and in the ordinary course of business, to pay or honor, as the case may be, the Compensation Obligations, Benefit Obligations, Vacation Obligations, Reimbursement Obligations, Administrative Obligations, and Independent Contractor Obligations (as such terms are described and defined in the Motion, the "Employee Obligations"), even if such payment exceeds $15,000 to or on behalf of any individual employee, including payments to administrators administering benefit plans on behalf of such employee; except that the Enron Wind Debtors shall establish a $15,000 payment limit to any individual employee only with respect to the Compensation Obligations and Vacation Obligations (as such terms are defined in the Motion).
3. United California Bank is authorized and directed to honor any prepetition checks or fund transfer requests with respect to the Employee Obligations. In addition, United California Bank is authorized and directed to honor any postpetition checks or new fund transfer requests with respect to the Employee Obligations.
4. To the extent that any direct or indirect subsidiary of the Enron Wind Debtors commence chapter 11 cases which are jointly administered with these chapter 11 cases, the provisions of this Order shall apply to such Enron Wind Debtors and their estates.
5. Nothing contained herein shall be deemed to constitute postpetition assumption or adoption of any practice, policy, plan, program or agreement pursuant to section 365 of the Bankruptcy Code. The Debtors have reserved all of their rights under the Bankruptcy Code with respect thereto.
6. This Order shall not be construed as requiring the Debtors to honor or pay any of the Employee Obligations to any particular employee, administrator, or third-party service provider, including relocation vendors; and, subject to this Order, the Debtors' right to make any such payment m respect of any Employee Obligation shall be in the Debtors' discretion and in their business judgment; and nothing contained herein shall constitute an assumption of any executory contract related to the Employee Obligations.
Dated: New York, New York February 22, 2002
/s/Arthur J. Gonzalez HONORABLE ARTHUR J. GONZALEZ UNITED STATES BANKRUPTCY JUDGE