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In re Enron Corp.

United States Bankruptcy Court for the Southern District of New York
274 B.R. 327 (2002)


Facts

Enron (debtor) was a multinational corporation consisting of 18 affiliated companies with 25,000 employees. Enron was founded and had its principal place of business in Texas, but the various affiliates were incorporated across five states. Enron had thousands of employees in Texas, but also many employees in other locations worldwide. Enron filed for reorganization under chapter 11 of the bankruptcy code in the United States Bankruptcy Court for the Southern District of New York. Enron’s bankruptcy was thought to be the largest bankruptcy case ever filed.  Among Enron’s thousands of creditors, many of the largest creditors were banks located in New York, with claims for billions of dollars. Enron hired attorneys and other professionals headquartered in New York. A group of creditors filed a motion to transfer the case to Texas. Enron, as well as a number of the largest creditors and the official committee of unsecured creditors, opposed the motion.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

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Issue

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Holding and Reasoning (Gonzalez, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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