Enron reorganization plan wins backing from most creditors

HOUSTON (AP) _ A majority of Enron Corp. creditors have certified the bankrupt company's reorganization plan, clearing the way for a judge's approval, the company announced Thursday. <br/><br/>Of

Friday, May 28th 2004, 6:04 am

By: News On 6

HOUSTON (AP) _ A majority of Enron Corp. creditors have certified the bankrupt company's reorganization plan, clearing the way for a judge's approval, the company announced Thursday.

Of creditor classes where votes were received, the Houston-based company said 104 voted to accept the plan that goes before U.S. District Judge Arthur Gonzalez for final confirmation next week in New York. Seven were opposed.

``We are pleased that we have sufficient votes to confirm the plan,'' said Stephen F. Cooper, Enron's acting CEO and chief restructuring officer. ``We will continue to work with these few dissenting classes to address their issues, answer their questions, and hopefully reach a positive resolution by our June 3 confirmation hearing.''

Enron collapsed in bankruptcy in December 2001 amid revelations of hidden debt and inflated profits that shattered the company's credibility on Wall Street.

Twenty-eight people _ including former CEO Jeffrey Skilling and former finance chief Andrew Fastow _ have been indicted on charges stemming from the Justice Department's probe of what led to the collapse.

The bankruptcy hearing had been scheduled for April but was delayed after creditors filed about 100 objections to the reorganization plan.

Gonzalez in January gave preliminary approval to Enron's plan, which proposes paying most of some 24,000 creditors about one-fifth of the approximately $66.4 billion they are owed in cash. Creditors also would receive stock in two Enron companies comprising domestic and international pipeline and power assets.