Case No. 01-16034 (AJG), (Jointly Administered)United States Bankruptcy Court, S.D. New York.
July 19, 2002
ORDER ESTABLISHING SCOPE OF DUTIES AND RESPONSIBILITIES OF EMPLOYMENT-RELATED ISSUES COMMITTEE
ARTHUR J. GONZALEZ, United States Bankruptcy Judge.
The United States Trustee having appointed an Employment-Related Issues Committee by Notice of Amended Appointment, dated March 29, 2002; and the Court having requested, on May 31, 2002, that Enron Corp. and its affiliated debtors and debtors in possession (collectively, the “Debtors”), the Official Committee of Unsecured Creditors (the “Creditors’ Committee”), the Employment-Related Issues Committee, and the United States Trustee confer and define the duties of the Employment-Related Issues Committee; and counsel for the Debtors, Weil Gotshal Manges, counsel for the Creditors’ Committee, Milbank, Tweed, Hadley McCloy, counsel to the Employment-Related Issues Committee, Kronish Lieb Weiner Hellman, and the United States Trustee having met and conferred, the parties have proposed that the Employment-Related Issues Committee shall have the following duties and responsibilities under 11 U.S.C. § 1103 (c):
1. Investigate, monitor and assist in the global resolution of pre-petition unsecured claims held by the Debtors’ current or former employees, either as a whole or a significant portion thereof, and arising from defined benefit and/or defined contribution plans, retiree benefit plans not covered under 11 U.S.C. § 1114, deferred compensation plans, ERISA and other employment related agreements, but excluding any claims as to which the holders’ interests therein fall within the enumerated responsibilities of State Street Bank and Trust under the order dated April 19, 2002 (collectively, the “Employment-Related Claims”); provided, however, that such duties and responsibilities shall neither permit nor include the defense of any objection interposed to the allowance of Employment-Related Claims;
2. Investigate, monitor and otherwise assist in the resolution of claims for severance pay asserted by the Debtors’ former employees, which are currently the subject of a joint settlement motion pending before the Court (the “Severance Settlement”);
3. Investigate and, if appropriate, prosecute on behalf of the Debtors’ estates avoidance actions against former Enron employees who received certain “90-day” pre-petition retention bonuses, as more fully described in the Severance Settlement;
4. Communicate with holders of Employment-Related Claims regarding (a) the progress of the Debtors’ chapter 11 cases generally and (b) any specific issues or motions affecting the treatment of Employment-Related Claims, as distinct from pre-petition general unsecured claims; and
5. Participate in the formulation of any plan of liquidation or reorganization for any of the Debtors solely to the extent of: (a) reviewing and negotiating the classification of Employment-Related Claims in such plan; (b) reviewing whether a plan which separately classifies Employment-Related Claims or any portion thereof discriminates unfairly or is fair and equitable with respect to such class; and (c) advising holders of Employment-Related Claims of the Employment-Related Issues Committee’s determination as to such plan.
In connection with any of the foregoing, the Employment-Related Issues Committee may file responses or objections or otherwise participate as a party in interest, pursuant to 11 U.S.C. § 1109 (b), on any matter uniquely affecting the treatment of Employment-Related Claims and related issues, as distinct from pre-petition general unsecured claims and related issues.
The Debtors, the Creditors’ Committee, the Employment-Related Issues Committee, and the United States Trustee having conferred and agreed to the foregoing scope for the Employment-Related Issues Committee, IT IS HEREBY ORDERED THAT:
1. The scope of duties and responsibilities of the Employment-Related Issues Committee shall be limited to the foregoing list.
2. In the event that the Employment-Related Issues Committee seeks to engage in any activity beyond the scope approved hereby, the Employment-Related Issues shall be required to obtain approval of such expanded duties and responsibilities by order of the Court, upon notice to the Debtors, the Creditors’ Committee and the United States Trustee.