Enron Creditors Object to Recovery Proposal

Enron Corp. creditors, who are owed an estimated $67 billion, filed at least 29 objections to the energy company’s bankruptcy recovery plan.

The regents of the University of California, the lead plaintiff in securities fraud lawsuits against Houston-based Enron, and the U.S. agency that oversees workers’ pensions were among those filing objections with the U.S. Bankruptcy Court in Manhattan.

Before Enron can advance the plan, U.S. Bankruptcy Judge Arthur J. Gonzalez must decide whether the company has given creditors adequate information. Gonzalez postponed an Oct. 29 hearing to review the proposal until Nov. 18, court papers show.

The delay “was more ministerial than anything else,” said Martin Bienenstock, Enron’s bankruptcy lawyer. “The time frames just appear too short, the court is busy ruling on the WorldCom situation” and Enron is “trying to satisfy a lot of parties,” he said.