Enron boss claims $25m ‘success fee’

The corporate turnaround specialist who led Enron through one of the most
infamous and expensive bankruptcies in corporate history is requesting a $25m
‘success fee’ for his work.

Stephen Cooper, of KZC Catalyst Partners, has served as Enron’s interim chief
executive since January 2002. He made the request in front of a US bankruptcy
judge in New York earlier this month as the last of the fees and expenses to be
submitted by lawyers, accountants and other professionals working on the
bankruptcy were filed.

The final reimbursement requests totalled $689m, but that figure was reduced
from more than $714m by a court-appointed committee.

Cooper initially requested the ‘success fee’ a year ago, but a judge refused
to make a ruling until all of the case’s final fee and expense requests had been

KZC Catalyst Partners has already received $107m in professional fees for its
work on Enron. However, in support of his reward, Cooper said in court that his
firm had successfully guided Enron through the complicated bankruptcy process
without selling its major assets at bargain prices during the stagnant economy
of 2002.

Enron declared bankruptcy in December 2001, and only emerged a year ago. It
was, along with WorldCom, responsible for the creation of Sarbanes-Oxley
legislation and the shift towards stricter corporate governance in the US. A
decision on Cooper’s request is expected shortly.

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