Cleaning Up After the Fall (Enron)--WaPo

[Demeter]

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/26/AR2005122600681.html?referrer=email

Liquidating Enron's Maze of Partnerships Could Cost More Than $1 Billion

By Carrie Johnson
Washington Post Staff Writer
Tuesday, December 27, 2005; Page D01

Four years after Enron Corp. collapsed, the Houston energy trader clings to life as "the financial equivalent of a Superfund site," its chairman said. New managers are struggling to clean up after the firm's December 2001 bankruptcy -- a process they say is likely to run into 2008. Two operating divisions must be unloaded. Lawsuits against banks that helped the company hide debt must be settled or brought to trial. Leftover cash must be dispensed to creditors claiming some $60 billion....

The company also employs 30 more people at a warehouse on the outskirts of town, where they oversee document requests from lawyers and investigators. A federal grand jury continues to hear evidence about wrongdoing at Enron. Board members say it is impossible to predict how much Enron's 30,000 creditors will ultimately receive. They continue to sift through claims, which once reached $1 trillion. Eventually, they hope to return about 20 cents on the dollar to creditors whose claims they deem valid. Disbursals are planned twice a year.

In the meantime, the lawyers, accountants and turnaround experts who guided the company through bankruptcy have collected or are seeking substantial amounts. Stephen F. Cooper, the corporate executive who served as Enron's interim chairman, wants a $25 million success fee -- besides his $1.3 million salary and extra consulting fees the company paid several of his associates at Kroll Zolfo Cooper LLC.

The law firm of R. Neal Batson, who prepared several reports as the company's court-appointed bankruptcy examiner over an 18-month period, took home $90 million. Dozens of other professional advisers billed more than $1 billion, making the Enron bankruptcy the costliest ever, said University of California at Los Angeles law professor Lynn M. LoPucki.
Enron's current directors are well compensated for their work, which they say is more akin to a management role than a traditional corporate board position. Each was recruited to handle a specific issue. Ray, who negotiates with investment banks and others, makes $1.2 million per year. California investment banker and vice chairman Robert M. Deutschman, who helps with valuing and spinning off the assets, collects $420,000. Three other directors, including Latimer, earn $300,000. Stephen D. Bennett, who has a background in the steel industry, monitors costs and budgets. Rick A. Harrington, a former top lawyer at Conoco Phillips, reviews litigation and regulatory issues.

[ixion]

1. a 25 milliion dollar 'success fee'?

gee, I ought to send that invoice to one of my clients after a success. :eyes:

[acmejack]

2. Typical.

Everyone gets screwed except for lawyers, accountants and turn around experts. What BS, those whose life's savings were stolen will realize twenty cents on the dollar, IF THEY ARE FORTUNATE!!

[gratuitous]

3. More than 30 full-time employees filling document requests?

Just scan the documents and put them on the internet, folks. Jesus, how fucking backward are they in Houston that this simple expedient doesn't suggest itself? It would also provide a LOT more transparency to a system that badly failed consumers and the public. Enron has lost any claim to confidentiality or trade secrets through its malfeasance. If we can execute individuals for criminal misconduct, a corporation should suffer no less than the death penalty for Enron-style misconduct.

[Demeter]

4. Lawyerese, No Doubt

It isn't evidence if it can't be waved under the jury's nose. Any lie on paper will do.