Case No. 01-16034 (AJG).United States Bankruptcy Court, S.D. New York.
December 27, 2005
CADWALADER, WICKERSHAM TAFT LLP, Edward A. Smith (ES 2461), New York, New York, and Mark C. Ellenberg (ME 6927), Washington, D.C. Special Counsel to the Reorganized Debtors.
BILL LOCKYER, ATTORNEY GENERAL OF THE STATE OF CALIFORNIA, Irene Tamura, Martin Goyette (pro hac vice), Supervising Deputy Attorney General, Irene Tamura, Deputy Attorney General, Sacramento, CA, Counsel to the State of California.
STIPULATION AND ORDER
ARTHUR GONZALEZ, Bankruptcy Judge
WHEREAS, commencing on December 2, 2001 (the “Petition Date”) and subsequently thereafter, Enron Corp. and certain of its affiliated entities (collectively, the “Debtors”) each filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code; and
WHEREAS, on July 15, 2004, this Court confirmed the Fifth Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the United States Bankruptcy Code, dated January 9, 2004, as modified on June 1, 2004 and July 2, 2004 (the “Plan”); and
WHEREAS, the Plan is now Effective; and
WHEREAS, on various dates, Bill Lockyer, Attorney General of the State of California, on behalf of the State of California (“California”), filed proofs of claim nos. 12172,
Page 2
12173, 12174, 12252, 12253, 12254, 12255, 12256 and 12257 asserting claims arising from events in the California energy markets; and
WHEREAS, on March 4, 2005, the Debtors filed an Objection to Proofs of Claim Nos. 12172 through 12174 and 12252 through 12257 and certain supporting papers (the “Objection”); and
WHEREAS, on April 11, 2005, California filed opposition to the Objection; and
WHEREAS, on July 5, 2005, the Court entered an Order disallowing California’s claims to the extent they asserted state law electricity market manipulation claims (the “Order”); and
WHEREAS, on July 15, 2005, California filed a Notice of Appeal to the United States District Court for the Southern District of New York from the Order, and, on July 18, 2005, filed an Amended Notice of Appeal; and
WHEREAS, on July 21, 2005, the Bankruptcy Court entered a Stipulation and Order Staying Proceedings Pending (i) Finalization of Settlement and (ii) Approval of Settlement by the Court and the Federal Energy Regulatory Commission (the “Stay Stipulation”); and
WHEREAS, pursuant to the Stay Stipulation, all proceedings relating to the Objection were stayed in accordance with the terms of the Stay Stipulation; and
WHEREAS, the Debtors, California and other settling parties entered into a Settlement and Release of Claims Agreement on August 24, 2005 settling the disputes addressed in that agreement (the “Settlement Agreement”); and
WHEREAS, on October 20, 2005, this Court entered an Order approving the Settlement Agreement; and
Page 3
WHEREAS, on November 15, 2005, the FERC entered an Order approving the Settlement Agreement; and
WHEREAS, the Settlement Agreement provides that California and the other Settling Claimants will sign and file any and all documentation necessary to effectuate the withdrawal of their respective proofs of claim within twenty-five Business Days after the Settlement Effective Date;[1] and
WHEREAS, the Settlement Effective Date was November 15, 2005.
NOW THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and between the undersigned parties and their respective counsel as follows:
1. Proofs of claim nos. 12172, 12173, 12174, 12252, 12253, 12254, 12255, 12256 and 12257 are hereby withdrawn with prejudice and without costs to any party.
2. The Objection is hereby withdrawn with prejudice and without costs to any party.
3. This Stipulation shall become effective and binding as of its entry on the docket. In the event that the settlement set forth in this Stipulation is not approved by the Court, this Stipulation shall be null and void and have no force or effect.
4. This Court shall retain jurisdiction with respect to any and all issues or disputes that may arise in connection with this Stipulation.
5. This Stipulation sets forth the entire understanding of the parties hereto and is intended to be the complete and exclusive statement of the terms thereof and may not be modified or amended except by a writing signed by all the parties hereto, which shall be so-ordered by the Court.
Page 4
6. This Stipulation may be executed in any number of counterparts and shall constitute one agreement, binding upon all parties thereto as if all parties signed the same document; all facsimile signatures shall be treated as originals for all purposes.
SO ORDERED.
Page 1