Case No. 01-16034 (AJG), Jointly Administered.United States Bankruptcy Court, S.D. New York.
July 7, 2005
ORDER PURSUANT TO SECTIONS 105 AND 363 OF THE BANKRUPTCY CODE AND FEDERAL RULES OF BANKRUPTCY PROCEDURE 2002 AND 9019, AUTHORIZING AND APPROVING (A) SETTLEMENT AGREEMENT WITH THE LUCELIA FOUNDATION, INC. AND OJIBWAY, INC., AND (B) THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED THEREBY
ARTHUR GONZALEZ, Bankruptcy Judge
Upon the Motion, dated June 24, 2005 (the “Motion”),[1]
of Enron Corporation (“Enron”), Enron Power Marketing, Inc. (“EPMI”) and certain of their affiliated entities, (collectively, the “Reorganized Debtors”), authorizing and approving the Settlement Agreement with The Lucelia Foundation, Inc. and Ojibway, Inc. and the consummation of the transactions contemplated thereby; and the Bankruptcy Court having jurisdiction to consider the Motion and the relief requested therein in accordance with 28 U.S.C. §§ 157 and 1334, and the Standing Order of Referral of Cases to Bankruptcy Court Judges of the District Court for the Southern District of New York, dated July 19, 1984 (Ward, Acting C.J.); and consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28 U.S.C. § 157(b); and venue being proper before the Bankruptcy Court pursuant to 28 U.S.C. §§ 1408 and 1409; and it
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appearing that due notice of the Motion has been given and no further notice need be given; and upon the proceedings before the Bankruptcy Court; and good and sufficient cause appearing;
IT IS HEREBY FOUND AND DETERMINED THAT:
A. It is in the best interest of the Reorganized Debtors, their estates and their creditors to enter into the Settlement Agreement, a copy of which is annexed to the Motion.
B. The terms of Settlement Agreement are in the best interests of the Reorganized Debtors, their entities and their creditors.
THEREFORE, IT IS HEREBY ORDERED THAT:
1. The Motion is granted.
2. The terms of the Settlement Agreement are authorized and approved in their entirety.
3. Pursuant to section 502 of the Bankruptcy Code, the Claims are hereby disallowed and expunged in their entirety.
4. The Reorganized Debtors are authorized and directed to execute, deliver, implement, and fully perform any and all obligations, instruments, documents and papers in connection with, and to take any and all actions reasonably necessary or appropriate to consummate the settlement reflected in, the Settlement Agreement and to perform all obligations contemplated therein.
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5. In accordance with the terms of the Settlement Agreement and pursuant to sections 105 and 363 of the Bankruptcy Code and Bankruptcy Rule 9019, the Reorganized Debtors are authorized and directed to pay to Lucelia: (a) $700,000.00 in full and complete satisfaction of all amounts payable to Lucelia pursuant to Section 8.3 of the Seminole LLC Agreement; and (b) $1,200,000.00, for the Lucelia Equity Interests.