Enron settles suit over Kenneth Lay's life insurance policy

[rainbow4321]

http://www.mysanantonio.com/sharedcontent/APStories/stories/D8L3RLBG0.html


Enron Corp. struck a deal to collect $250,000 on a life insurance policy covering its founder, Kenneth Lay, who died just weeks after he was convicted of fraud charges related to the company's collapse.

At a hearing Thursday, U.S. Bankruptcy Judge Arthur Gonzalez is scheduled to consider the settlement. In documents filed with the U.S. Bankruptcy Court in Manhattan, Enron said Transamerica Occidental Life Insurance Company agreed to pay the money out of an $11 million death benefit owed under the policy.

<snip>

According to court documents, a Texas partnership bearing the initials of Lay and his wife, Linda, obtained a life insurance policy for Lay. But under a deal with the company in 1996, the partnership granted Enron the right to a portion of the insurance proceeds in the event of Lay's death.

The documents, filed by Enron, say that the assignment was intended "to secure the amounts due to (Enron)" under a deal with the partnership, KLL & LPL Partnership Ltd. Neil Berger, an attorney representing Enron, wasn't available for comment on the transaction Tuesday.

[gratuitous]

1. They settled for $250,000 on an $11 million benefit?

Where did Enron ever get the reputation as the smartest guys in the room? Sounds like they got taken to the cleaners by Transamerica. I wonder if Judge Gonzalez will approve the settlement? I have to think that some of Enron's creditors are questioning why more money from this $11 million benefit isn't being paid to Enron so it can satisfy a couple more of its debts.

[spag68]

2. Enron

Maybe they know that the more money they get, the more they will have to pay out to the little people. There is probably a side deal to get money to the wife.

[Demeter]

3. They Say They Closed the Book On Enron

but this is proof that the crime will continue for a generation or more....