Enron Re given time to change
Enron Re has been given six months to get itself in order.
The Bermuda-based captive of failed energy giant Enron was forced into liquidation in January but its status could change in coming months according to a court statement last week. The matter will not return to court until Friday, September 13, 2002.
In Supreme Court on Friday, Milligan-Whyte & Smith lawyer Lesley Basden asked for six-months "as there is the possibility the company may return to solvency".
Chief Justice Austin Ward granted the extension but asked rhetorically "do you believe that," when Ms Basden indicated the company could come back from the brink of being wound down.
The company was ordered into provisional liquidation by the Supervisor of Insurance and the Bermuda Monetary Authority after it was found that Enron Re's capital was below the minimum required margin of solvency of $1 million.
The company had $9.58 million in assets and liabilities of close to $9 million, leaving less than $1 million in capital.
The firm - understood to be one of nearly 800 Enron subsidiaries - was formed two years ago as a Class 3 insurer.
Ms Basden told The Royal Gazette that the company is still in provisional liquidation but that may be subject to change once the matter returns to court in September.