View this article online: https://www.insurancejournal.com/news/national/2002/04/10/16803.htm
Enron officials are still seeking insurance money to cover legal defense costs stemming from the energy-giant’s bankruptcy fallout, according to the Associated Press. Their request to release money from AEGIS Insurance Co. was denied in late February by a U.S. Bankruptcy Judge in New York.
AEGIS issued primary liability policies for Enron officials, who are seeking up to $30 million in insurance payments. Payments after the first $30 million are covered by other companies.
Many of Enron executives are fighting allegations that they sold off millions of dollars of Enron stock despite their knowledge of the company’s impending downfall.
The judge concluded that the request was improper in terms of procedure. Creditors also opposed the request, stating that they wanted the money to be accessible as potential reimbursement in lawsuits against the officials.
Both AEGIS and some Enron officials have subsequently filed requests for the judge to release some or all of the money.