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Article: Enron Expects Bankruptcy Costs to Exceed $1 Billion.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- November 14, 2003
CopyrightCOPYRIGHT 2003 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Eric Berger, Houston Chronicle Knight Ridder/Tribune Business News
Nov. 14--By Enron's own reckoning, the legal and accounting costs of its bankruptcy will exceed $1 billion in 2006.
Typically, legal fees in a bankruptcy drop off dramatically after a company gains approval for a plan of reorganization -- a road map for its exit from bankruptcy -- which Enron expects to do early next year.
But the company's budget through 2006 estimates more than $300 million will be spent after Enron confirms its plan. That's more than any company has ever spent confirming a Chapter 11 bankruptcy plan.
"It's shocking," said Lynn Lopucki, a law ...