Citgroup settles with Enron creditors
Citigroup has agreed to settle a lawsuit with the now defunct Enron Corp. that will pay creditors of the former energy trading company $1.66 billion.
Citigroup, Inc. has agreed to settle a lawsuit with the now defunct Enron Corp. that will pay creditors of the former energy trading company $1.66 billion.
The settlement agreed to by Citigroup is the largest of 11 suits brought against U.S banks. It involves giving up $4.25 billion of claims against Enron and the Houston-based company releasing all claims brought against the New York-based firm.
The settlement avoids a court showdown that would have taken place sometime this year.
Citigroup had prepared for the lawsuit by setting aside $2.8 billion for anticipated legal pay outs to Enron, according to published reports.
“We are pleased to have reached a successful resolution of the two largest outstanding matters dating from the Enron disputes,” said Citigroup officials in a statement.
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