Houston, TX, Oct. 9, 2006 — Enron Corp. announced that it has reached an agreement with FleetBoston Financial Corp. (Fleet Financial) and Fleet National Bank (Fleet National) and certain of their affiliates (collectively: Fleet), which merged into Bank of America, N.A. and is the successor to Fleet National Bank, to settle the MegaClaims litigation and an avoidance action to recover preferential transfers in connection with Enron’s Commercial Paper litigation.
Pursuant to the terms of the settlement, Fleet Financial will pay Enron $10.4 million to settle the MegaClaims litigation and $9.35 million to settle the Commercial Paper litigation. Fleet Financial did not admit liability or wrongdoing and both parties agreed to settle the litigation to avoid the costs and uncertainties of further proceedings.
Remaining MegaClaim defendants include Citigroup Inc., Deutsche Bank AG and Barclays PLC.
The settlement remains subject to the execution of definitive agreements and the approval of the United States Bankruptcy Court for the Southern District of New York.
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