What is left of the defunct accounty firm Arthur Andersen L.L.P. has agreed to pay Enron Corp. creditors $16 million to settle a claim that the firm was negligent in its advising and auditing of the energy firm, whose bankruptcy was once described as the largest corporate bankruptcy in U.S. history and still ranks fourth overall.
The settlement, which includes a continued denial of negligence, must be approved by the New York bankruptcy judge overseeing the Arthur Andersen bankruptcy. Four former partners of the accounting firm are handling all the pending litigation against the defunct company.
Thinking of the huge bankruptcy of Enron, due to fraud and accounting irregularities, makes me wonder how a bankruptcy at Chrysler or GM will look.
Chrysler is still negotiating with its creditors to stave off a bankruptcy filing that could happen as soon as tomorrow.
***The AP is reporting that negotiations with Chrysler’s creditors have broken off and that the company will file Chapter 11 bankrupcty today (April, 30).
Officials at GM have said that if agreements cannot be reached with its bond holders, that it may have to file bankruptcy at the end of May.
