New Attorney General Greg Abbott has some harsh words for Enron's bankruptcy attorneys:
Texas Attorney General Greg Abbott blasted Enron's bankruptcy attorneys Monday, saying they are "lining their pockets" with fees at the expense of taxpayers, former employees and investors.
At the present rate of spending, Abbott said, the money spent on lawyers and accountants sorting through Enron's remains could approach $1 billion. He said the company should consider an immediate liquidation.
Since going into bankruptcy 13 months ago, Enron has spent more than $300 million on professional fees -- easily a record -- and is burning through $25 million a month. The situation could linger for months, even years.
"What have we gotten for our money?" Abbott said. "There's been no reorganization plan, and there is no reorganization plan that is imminent.
"Not only are we not even coming close to seeing the light at the end of the tunnel, I don't think we're even in the tunnel yet."
UPDATE: I posted this entry in a bit of a hurry, so let me clarify. I do understand that Chap7 means "liquidate" and Chap11 means "reorganize". I'm not clear on what that means in practical terms. Is he just mad at the pocket-lining people, and if so how would Chap7 stop them? What's the state's interest in this? That's what I don't understand. Sorry for the confusion.Posted by Charles Kuffner on January 14, 2003 to Enronarama | TrackBack