Enron May Avoid Bankruptcy

Thursday a federal judge approved the plan of reorganization of the debts of US bankrupt energy corporation Enron, what may help the company to avoid the bankruptcy.
The majority of Enron's creditors had signed off on the plan in recent months. The plan is supposed to become effective by the end of the year, however, no exact details are provided.
Enron CEO Stephen Cooper said that several tax and change-of-control issues need to be resolved before creditors can begin receiving proceeds under the plan.
The company intends to resolve these issues "as expeditiously as possible," he said.
When it completes negotiations with its creditors, Cooper expects Enron to face US$63 billion in claims, against which US$12b in cash and equity assets will be distributed -- an overall recovery rate of about 19 per cent.