Office of the Attorney General News Release Archive
Tuesday, March 5, 2002
TEXAS ATTORNEY GENERAL'S OFFICE SUCCESSFUL IN HAVING COURT DECIDE ADDITIONAL SEVERANCE PAYMENT FOR FORMER ENRON EMPLOYEES
AUSTIN - Federal Bankruptcy Judge Arthur J. Gonzalez in a conference call hearing today approved a plan to distribute additional severance payments totaling $5 million to former Enron employees.
Judge Gonzalez raised the issue during today's hearing in response to a request to the court and parties yesterday by Texas Deputy Attorney General Jeff Boyd asking that the money be distributed as soon as possible.
The court agreed that it was important that the money be distributed to former employees, many of whom are suffering extreme financial hardships, sooner rather than later.
Today's conference call hearing, in which Boyd, the U.S. Bankruptcy Trustee, and attorneys for Enron, the creditors committee, former employees and the Rainbow Coalition/Push participated, followed Enron's agreement last week to create a $5 million fund for its former workers.
"The Texas Attorney General's Office sought a ruling as quickly as possible because of concerns that prolonged negotiations would delay the delivery of this critical financial assistance to former Enron employees," Boyd said.
Under the agreement approved today, a written order confirming today's action by Judge Gonzales will be filed later this week.
Some 4,500 former Enron employees, terminated in December or shortly before the bankruptcy filing, will receive an additional severance payment of about $1,000 directly from Enron.
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