Wednesday, February 4, 2009

Enron Halts Demand Against Banguat

Bankrupt U.S. company Enron Corporation withdrew its lawsuit against 120 entities, including Banco de Guatemala (Banguat) from which it was demanding US $14.98 million.

In 2001, over a 23 day period, Banguat bought and sold shares of Enron one month before the firm went bust. Enron therefore inferred that Banguat must have had inside knowledge of Enron's impending collapse.

The withdrawal terminates litigation initiated five years ago in 2003. A judge in the bankruptcy court of New York accepted desist orders terminating the actions against the 120 entities.

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