Enron Corp. last week took a giant step closer to emerging from bankruptcy when 104 of 111 creditor classes agreed to its reorganization plan.
For a creditor class to have accepted the plan, the company noted, two-thirds of the dollar amount represented by the class and more than 50 percent of the creditors was required. A federal judge is scheduled to hear the details this Thursday.
“We are pleased that we have sufficient votes to confirm the plan,” said Stephen Cooper, Enron’s acting chief executive and chief restructuring officer, in a statement. “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.”
If Enron is unable to hammer out an agreement with the dissenters, those classes will be able to present their case to the bankruptcy court, after which the bankruptcy judge will make approve a final plan, Reuters explained.
In January, according to the Houston Chronicle, the judge gave preliminary approval to Enron’s plan, which proposes paying most of about 24,000 creditors approximately one-fifth of the $66.4 billion they are owed in cash and stock in two companies holding domestic and international pipeline and power assets.
This week’s hearing, originally scheduled for April, was delayed after creditors filed about 100 objections that reorganization plan, according to the Chronicle. Enron lawyers sought to resolve a large number of objections before bringing the plan to the judge for final confirmation, the paper added.
The company hopes to emerge from bankruptcy by the end of the year.