Office of the Attorney General News Release Archive
Tuesday, January 8, 2002
TEXAS ATTORNEY GENERAL JOHN CORNYN ASKS FEDERAL BANKRUPTCY TRUSTEE TO APPOINT OFFICIAL COMMITTEE OF FORMER ENRON EMPLOYEES
AUSTIN - Texas Attorney General John Cornyn yesterday asked a federal bankruptcy court to appoint a committee of former Enron employees to represent their particular interests in the energy corporation's bankruptcy trial.
"I am very concerned by the countless stories of former employees who lost their life savings in 401 (k) plans when Enron and its affiliates sought bankruptcy protection," Attorney General Cornyn wrote in a letter to U.S. Trustee Carolyn S. Schwartz. "I strongly believe these hardworking men and women need and deserve a resounding voice in Enron's reorganization."
Since Dec. 2, more than 2,800 former Enron employees have filed claims for unemployment benefits with the State.
If the U.S. Trustee appoints an official committee of former employees, Enron would bear the expense of the entity's legal representation in the bankruptcy hearing.
Yesterday, Deputy Attorney General Jeff Boyd, who supervises the agency's Enron Task Force, argued the State's motion to transfer the energy corporation's pending bankruptcy case from Manhattan to Houston, where Enron is headquartered. The case was heard in federal bankruptcy court in Manhattan.
In December 2001, Attorney General John Cornyn formed an Enron Task Force to identify legal actions that are necessary to protect the State's interests as a result of the financial collapse of Houston-based Enron.
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