Times Wire Reports

In a blast from the past, Arthur Andersen agreed to pay $16 million to Enron Corp. creditors to settle claims that the accounting firm was negligent in auditing and advising the onetime giant energy trader, which collapsed in bankruptcy in 2001.

A hearing on whether a bankruptcy judge should approve the settlement is scheduled for May 14. The accord resolves a lawsuit filed in Houston accusing Arthur Andersen, now largely defunct, of approving transactions that manipulated Enron’s financial condition for the benefit of its executives.

The two sides asked the U.S. Bankruptcy Court to approve the accord in a document filed April 21.