According to Dow Jones Newswires, a hearing to determine whether a trio of Enron Corp. insurers are going to honor combined directors’ and officers’ policies amounting to $75 million has been delayed to March 21.
Insurers St. Paul Cos. (SPC), Royal Insurance Company of America, and Lloyd’s of London have reportedly turned away from honoring directors’ and officers’ policies distributed as a direct link to Enron’s reported material misrepresentations.
If the trio of insurers are able to revoke coverage, eight other companies that made available to Enron directors’ and officers’ coverage, amounting to a combined $350 million, will do likewise.
Enron has attempted to utilize the policies along with $95 million in fiduciary coverage to cover legal defense costs for both past and present executives.
Just last week, a bankruptcy court judge turned down the company’s motion to influence the insurers to compensate immediately, noting they should determine for themselves as to if claims are covered under the policies.