Credit Suisse Group Inc. agreed to pay Enron Corp. creditors $61.5 million to settle a lawsuit related to equity transactions. The settlement resolves all bankruptcy proceedings involving Credit Suisse.
The Swiss bank admitted no wrongdoing in the settlement, which remains subject to approval by the U.S. Bankruptcy Court for the Southern District of New York. Equity transaction lawsuits are still pending against Bear Stearns Cos. and UBS AG.
Separately, Credit Suisse agreed in May 2006 to pay Enron $90 million as part of the so-called “MegaClaims” lawsuits, which settled allegations that the bank helped Enron commit fraud (see Daily GPI, May 11, 2006). The only remaining MegaClaims defendants are Citigroup Inc. and Deutsche Bank AG. Barring a settlement, a trial on fraud and bankruptcy claims is scheduled for early 2008.
Houston-based Enron Creditors Recovery Corp. legally changed its name from Enron Corp. on March 1. It exists to sell assets, pay debts and conduct litigation. In April, Enron said it had distributed $11.5 billion to creditors.
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