Enron is sueing Citigroup and J.P. Morgan Chase to recover more than $32 million of fees it paid in the month before it sought protection from its creditors.
Houston-based Enron filed its complaint against the banks, who are also Enron’s largest creditors, in the US Bankruptcy Court in Manhattan on Tuesday. Enron says it is seeking to recover about $18.8 million from Citigroup and $13.6 million from J.P. Morgan.
In July the two banks agreed to pay more than $300 million to settle federal and local charges that they helped Enron inflate cash flow and hide debt, and avoid prosecution for securities fraud without admitting or denying wrongdoing.