The two federal judges in Houston and New York City who are overseeing Enron Corp.’s massive bankruptcy case have ordered mediation in an attempt to clear some of the huge amount of litigation confronting the courts.

In a joint hearing, Houston federal District Judge Melinda Harmon, who is handling shareholder lawsuits, and Manhattan federal Bankruptcy Judge Arthur J. Gonzalez, who is handling the overall Enron bankruptcy, ordered several parties to attempt settlements through a mediator.

District Judge Kevin Duffy, located in Manhattan, agreed to serve as mediator, and Harmon and Gonzalez said in their joint order that the mediation results would be nonbinding, unless the parties otherwise agree.

A spokesman for the University of California, the lead plaintiff in the shareholders’ lawsuit, said the university welcomed the courts’ action “to help speed restitution to those victimized in the Enron fraud.” Trey Davis added, “We will fight for our fair share during the mediation process and believe we are in a strong position to prevail on behalf of the shareholders.”

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