This move would allow Enron’s former workers to proceed in their efforts to establish that the company violated federal pension laws in its handling of its 401(k) Plan, and share in whatever proceeds may be available after secured creditors’ fulfill their claims in the bankruptcy.
Another request made in the firm’s motion to lift the
stay is to block Enron from tapping into an $85 million
fiduciary liability insurance policy earmarked to
compensate workers, following statements made by the
company suggesting its intent to use the policy proceeds to
fund the legal defense of company executives currently
being investigated by the government.
The suit, formally titled Kemper, et al. v. Enron Corp., et. al., seeks to recover for Enron’s current and former employees a portion of the $1 billion that has disappeared from their 401(k) accounts in the wake of the company’s collapse.