In re Enron Corp.

Full title: IN RE: ENRON CORP., et al., Chapter 11, Debtors

Court: United States Bankruptcy Court, S.D. New York

Date published: May 12, 2003

Case No. 01-16034 (AJG) Jointly Administered (Bankr. S.D.N.Y. May. 12, 2003)

Opinion

Case No. 01-16034 (AJG) Jointly Administered

May 12, 2003.

ORDER CLARIFYING ORDER, PURSUANT TO SECTIONS 105(a), 363(b), 1103(c)(5) AND 1109(b) OF THE BANKRUPTCY CODE, AUTHORIZING THE OFFICIAL EMPLOYMENT-RELATED ISSUES COMMITTEE TO COMMENCE CERTAIN AVOIDANCE ACTIONS ON BEHALF OF ESTATES

ARTHUR J. GONZALEZ, United States Bankruptcy Judge

Upon consideration of the application, dated April 9, 2003 (the "Application")¹ filed by the Official Employment-Related Issues Committee (the "Employees' Committee") of Enron Corp. and certain of its affiliated debtor entities (collectively, the "Debtors"), seeking clarification of this Court's order dated August 28, 2002 (the "Severance Settlement Order") authorizing the Employees' Committee to investigate and prosecute certain 90-day retention bonuses received by certain Enron employees (the "90-Day Bonus Avoidance Actions"); and the Court being satisfied that the clarification of the Severance Settlement Order is necessary and would be in the best interest of the Debtors and their estates, and it appearing that the Court has jurisdiction to consider the Application pursuant to 28 U.S.C. § 157 and 1334 and pursuant to the terms of the Severance Settlement Order; and it appearing that the relief requested in the Application is in the best interest of the Debtors, their estates and creditors; and it appearing that due notice of the Application has been given and no further notice need be given; and upon the proceedings before the Court; and good and sufficient cause appearing:

1 Capitalized terms used but not defined in this Order have the meaning ascribed to them in the Application.

IT IS HEREBY ORDERED THAT:

1. The Application is granted.

2. The Severance Settlement Order is hereby clarified to provide that the Employees' Committee may investigate, prosecute, avoid and recover proceeds of the 90-day retention bonuses whether or not the Transferees of the 90-day retention bonuses actually received the bonus proceeds prepetition or postpetition and that avoidance of such proceeds are deemed to be part of the definition of "90-Day Bonus Avoidance Actions" found in the Severance Settlement Order.

3. The Severance Settlement Order is hereby clarified to provide that the Employees' Committee was and is authorized to utilize any and all legal authority under state or federal law to prosecute the 90-Day Bonus Avoidance Actions whether or not the Transferees actually received bonus proceeds prepetition or postpetition.

4. Except as modified herein, the Severance Settlement Order remains in full force and effect.