FORMER ENRON EMPLOYEES APPLAUD DECISION TO APPOINT AN OFFICIAL EMPLOYEE COMMITTEE

HOUSTON - A group of former employees of Enron Corp. reacted today to The United States Trustee's decision to appoint an official committee to represent their interests in the Enron bankruptcy cases pending in New York.

An ad hoc group of former Enron workers, represented by David P. McClain, of McClain & Siegel, P.C., requested the appointment of such a committee on December 19, 2001, shortly after Enron and its affiliated companies filed for bankruptcy.  Richard Rathvon, who helped organize the ad hoc group and Mr. McClain met extensively with Ms. Carolyn S. Schwartz, the U.S. Trustee, in New York and with the Texas Attorney General's office to outline the need for employee representation.

Enron had taken the position that the employees' interests were adequately represented in the bankruptcy cases by the existing Official Committee of Unsecured Creditors.  The employees strongly disagreed.  "The employees' interests are unique in these cases.  Most employees are not only creditors, but are also shareholders.  A creditors' committee which is largely constituted of mammoth financial institutions could not adequately represent the interests of employees" said Michelle Robichaux, also of the ad hoc group.  McClain added, "this is a great day for Enron employees.  They are now assured a voice in the process equal to the banks."

On February 14, 2002, Ms. Schwartz wrote Mr. McClain, informing him of the decision.  In the letter, Schwartz acknowledged the uniqueness of the former employees' interests, explaining that "because of the issues peculiar to these cases, including the facts that there are more than 20,000 participants in the Debtors' employee benefits plans, and many suits have been brought relating to the Debtors' 401(k) plan, I have determined that separate representation is appropriate." 

The employees were clearly pleased with the Trustee's decision.  McClain said, "many details remain to be worked out, but we can now be assured that the former employees have a say in reorganizing the company they helped to build."                  

The members of the committee have not yet been appointed, and Ms. Schwartz has invited Mr. McClain to submit to her candidates to serve.