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Enron Generators

Milwaukee, WI: (Sep-28-07) Enron Wind Energy Systems brought a lawsuit against Regal Beloit Corp. seeking recovery and damages from Marathon Electric Manufacturing Corp., one of Regal Beloit's subsidiaries, related to 564 generators Enron purchased in the late 1990s. Enron and several affiliated firms filed the suit in 2004. In a settlement reached, Regal Beloit stated that Marathon Electric would enter into an agreement that will reduce after-tax earnings by $1.15 million. Earlier in the year, Regal Beloit, a Beloit-based manufacturer of electric motors, generators, and motion control equipment had warned of a possible $1.8 million, or 33 cents per share, pretax charge in the third quarter related to the case.

The US Bankruptcy Court for the Southern District of New York approved the settlement agreement. Under the terms of the settlement agreement, Enron Wind has fully released and discharged Marathon from all claims relating to the action and, in exchange, Enron Wind will receive a monetary payment. After contributions from other involved parties, the after-tax impact of Marathon's portion of the payment under the settlement agreement is approximately $1.15 million. [MILWAUKEE BUSINESS JOURNALS: COMMERCIAL SETTLEMENT]

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Published on Oct-1-07


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