HOUSTON - An Official Employment-Related Issues Committee was appointed today by the United States Trustee in the Enron bankruptcy case. The Employee Committee includes a member of the Ad Hoc Committee of Former Enron Employees, which initially made the request for the creation of a separate, official, employee committee.

Richard D. Rathvon, head of the Ad Hoc Employees Committee, was notified today of his appointment to the official Employee Committee. "On behalf of all current and former employees of Enron, I am delighted that the Trustee has established an official committee to investigate and monitor issues in the Enron bankruptcy case which uniquely affect former employees," said Rathvon. "I look forward to working with the other members of the committee to further all employees’ interests in Enron’s bankruptcy."

The Employee Committee will investigate the continuation of heath and other benefits, employee claims against Enron, the treatment of employee claims under any plan of reorganization, potential violations of federal law in the termination of Enron employees, and potential violations of state and federal labor laws. Additionally, the Committee will provide information to employees.

David P. McClain, of McClain & Siegel, P.C., a Houston bankruptcy firm representing the Ad Hoc Committee, stated, "This is an extremely important step in ensuring fairness in the bankruptcy process for the former employees of Enron. It was crucial that an official committee under the United States Bankruptcy Code be appointed to give the employees a voice in the proceedings. We are delighted that Enron employees, current and former, will finally be heard."

The Ad Hoc Committee made the initial request for the appointment of an official employee committee shortly after Enron and its affiliated companies filed for bankruptcy. In January, Rathvon and McClain met with Carolyn S. Schwartz, the United States Trustee in charge of the Enron bankruptcy, to discuss the need for a separate employees committee. After that meeting, Schwartz confirmed that she would appoint an official committee to represent the employees’ interests.

McClain added, "Although it has been a lengthy process, we appreciate the hard work and thoughtfulness the Trustee’s office has put into the formation of the Employee Committee."