IN RE ENRON CORP.

Bankruptcy No. 01 B 16034(AJG), Adversary No. 03-92677 A, Adversary No. 03-92682 A.

325 B.R. 671 (2005)

In re ENRON CORP., et al., Reorganized Debtors. Enron Corp., Plaintiff, v. J.P. Morgan Securities, Inc., et al., Defendants. Enron Corp., Plaintiff, v. Mass Mutual Life Insurance Co., et al., Defendants.

United States Bankruptcy Court, S.D. New York.

June 15, 2005.


Attorney(s) appearing for the Case

Venable LLP, by Richard L. Wasserman, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., Baltimore, MD, Special Litigation Counsel for Enron Corp.

Togut, Segal & Segal, LLP, by Albert Togut, Esq., Howard P. Magaliff, Esq., Frank A. Oswald, Esq., Scott E. Ratner, Esq., of Counsel, New York, NY, Co-Counsel for the Debtors.

Squire, Sanders & Dempsey LLP, by Jeffrey A. Marks, Esq., Cincinnati, OH, Counsel for the Official Committee of Unsecured Creditors.

Bingham McCutchen LLP, by Tina L. Brozman, Esq., Mark M. Elliot, Esq., Joshua Dorchak, Esq., New York, NY, Counsel for Allstate Life Insurance Company, Deutsche Bank Securities, Menlo Life Insurance Co., Charles Schwab Investment Management, Inc., Schwab YieldPlus Fund and two Diversified Funds.

Bingham McCutchen LLP, by Sabin Willett, Esq., Boston, MA, Counsel for Allstate Life Insurance Company, and two Diversified Funds.

Bingham McCutchen LLP, by Harold S. Horwich, Esq., Hartford, CT, Counsel for Menlo Life Insurance.

Cleary, Gottlieb, Steen & Hamilton, by Jeffrey A. Rosenthal, Esq., Boaz A. Weinstein, Esq., New York, NY, for Lehman Commercial Paper, Inc., and Lehman Brothers International Europe.

Cleary, Gottlieb, Steen & Hamilton, by Lindsee P. Granfield, Esq., Max Gitter, Esq., New York, NY, Counsel for Goldman, Sachs & Co.

Fulbright & Jaworski LLP, by David A. Rosenzweig, Esq., New York, NY, Zack A. Clement, Esq., Linda L. Addison, Esq., R. Andrew Black, Esq., David A. Rosenzweig, Esq., Houston, TX, Counsel for The Northern Trust Company.

Kirkpatrick & Lockhart LLC, by Keith W. Miller, Esq., Jeffrey N. Rich, Esq., Robert N. Michaelson, Esq., New York, NY, Counsel for M & T Investment Advisors, Inc. f/k/a Allied Investment Advisors Inc.

Choate Hall & Stewart, by Michael A. Walsh, Esq., Charles L. Glerum, Esq., Boston, MA, Counsel for Mass Mutual Life Insurance Company and Affiliates.

Clifford Chance U.S. LLP, by Wendy A. Kraus, Esq., Madlyn Primoff, Esq., New York, NY, Counsel for Banco Provincial Overseas, N.V.

Pillsbury Winthrop LLP, by Karen Dine, Esq., New York, NY, Counsel for The Bank of New York Company, Inc.

Holland & Knight, LLP, by Arthur E. Rosenberg, Esq., Barbara R. Parlin, Esq., New York, NY, Attorneys for Thrivent Financial Defendants and Analog Devices, Inc.

Holland & Knight, LLP, by John J. Monaghan, Esq., Boston, MA, Counsel for Analog Devices, Inc.

Hughes Hubbard & Reed LLP, by James W. Giddens, Esq., Christopher K. Kiplok, Esq., New York, NY, Counsel for the Aetna Defendants.

Wormser, Kiely, Galef & Jacobs LLP, by Janice B. Grubin, Esq., New York, NY, Counsel for the Belo Company.

Patterson, Belknap, Webb & Tyler LLP, by David W. Dykhouse, Esq., Anne E. Reilly, Esq., New York, NY, Counsel for the Inverban Defendants.

Kramer Levin Naftalis & Frankel LLP, by Gary M. Becker, Esq., New York, NY, Counsel for Piper Jaffray & Co., AXA Defendants, and Fleet Defendants.

Lovells, by Karen Ostad, Esq., Dina Gielchinsky, Esq., New York, NY, Counsel for Marlon Insurance Company Limited and Capital Assurance Company, Inc.

Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., by William W. Kannel, Esq., Kevin J. Walsh, Esq., Boston, MA, Counsel for State Street Bank & Trust Company.

Gregory P. Joseph Law Offices LLC, by Gregory P. Joseph, Esq., Mara Leventhal, Esq., New York, NY, Scarcella Rosen & Slome LLP, by Louis A. Scarcella, Esq., Uniondale, NY, Attorneys for Banco Espirito and Scott and White Defendants.

Wilmer Cutler Pickering LLP, by Philip D. Anker, Esq., Matthew P. Previn, Esq., New York, NY, Counsel for Bank One Trust Company, N.A.

Hunton & Williams LLP, by Tyler P. Brown, Esq., Benjamin C. Ackerly, Esq., Michael C. Shepherd, Esq., Richmond, VA, Counsel for General Motors Defendants and Trusco Capital Management, Inc.

Hunton & Williams LLP, by Joseph J. Saltarelli, Esq., New York, NY, Counsel for Trusco Capital Management, Inc.

Cravath, Swaine & Moore, Esq., by Andrew B. Kratenstein, Esq., New York, NY, Counsel for Credit Suisse First Boston LLC.

Stites & Harbison PLLC, by W. Robinson Beard, Esq., Charles J. Cronan, IV, Esq., Louisville, KY, Counsel for Brown-Forman Corp. and Longnorth Ltd.

Seyfarth Shaw LLP, by Gus A. Paloian, Esq., William J. Factor, Esq., Charles S. Riecke, Esq., Chicago, IL, Counsel for Northern Trust Banking Customers.

Seyfarth Shaw LLP, by Andrew T. Hahn, Sr., Esq., New York, NY, Counsel for Northern Trust Customers.

Dreier LLP, by Noramn N. Kinel, Esq., Timothy A. Solomon, Esq., New York, NY, Counsel for Nomura Asset Management U.S.A. Inc., the Bond Select Trust, Global Fund Management S.A., and Nomura Bank (Luxembourg) S.A.

Dewey Ballantine LLP, by Benjamin Hoch, Esq., James P. Smith III, Esq., Carey D. Schreiber, Esq., James P. Smith, III, Esq., New York, NY, Counsel for MONY Defendants.

Morris, Nichols, Arsht & Tunnell, by Derek C. Abbott, Esq., Robert J. Dehney, Esq., Wilmington, DE, Counsel for Wilmington Trust Company, GMP Companies, Inc., EchoStar Communications Corp.

Westermann Hamilton Sheehy Aydelott & Keenan LLP, by Tara B. Mulrooney, Esq., Garden City, NY, Counsel for Defendant Diversified Investment Advisors.

Kelley Drye & Warren LLP, by Steven P. Caley, Esq., Mark I. Bane, Esq., New York, NY, Counsel for the J.P. Morgan Defendants.

Otterbourg, Steindler, Houston & Rosen, P.C., by Peter Feldman, Esq., William M. Silverman, Esq., John Bougiamas, Esq., Anthony M. Piccone, Esq., New York, NY, Counsel for The Mitsubishi Trust & Banking Corp., individually and as Trustee of the Merrill Lynch Tanchucki Bond Open Mother Fund, and the Aeltus Defendants.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, by Douglas R. Davis, Esq., Stephen J. Shimshak, Esq., New York, NY, Counsel for Citibank NA and its Affiliates, Banco National de Mexico.

Curtis Mallet-Provost Colt & Mosley, by Miriam Harwood, Esq., New York, NY, Counsel for Defendant Banco Serfin, S.A.

Sidley Austin Brown & Wood LLP, by William M. Goldman, Esq., John G. Hutchinson, Esq., New York, NY, Counsel for Merrill Lynch Investment Managers, L.P.

White & Case LLP, by Evan C. Hollander, Esq., Sheron Korpus, Esq., New York, NY, Counsel for the UBS Defendants, Saltash Enterprises, and Harald and Joann McPike.

Debevoise & Plimpton, by Michael E. Wiles, Esq., New York, NY, Counsel for the Prudential Defendants.

Schulte Roth & Zabel LLP, by Michael L. Cook, Esq., Alix S. Pustilnik, Esq., New York, NY, Counsel for Alfa, S.A. de C.V.

Buchanan Ingersoll, by Margaret Manning, Esq., Wilmington, DE, Susan P. Persichilli, Esq., New York, NY, Counsel for New Castle County.

Pepper Hamilton LLP, by Linda J. Casey, Esq., Thomas E. Zemaitis, Esq., Philadelphia, PA, I. William Cohen, David Murphy, Julie M. Skidmore, Detroit, MI, for Kelly Properties, Inc.

Peitzman, Weg & Kempinsky, LLP, by Howard J. Weg, Esq., Louis E. Kempinsky, Esq., James P. Menton, Jr., Esq., Los Angeles, CA, Hahn & Hessen LLP, by Roseanne Thomas Matzat, Esq., New York, NY, Counsel for Cascade Investment, L.L.C.

Pachulski Stang Ziehn & Weintraub, by Stanley Goldich, Esq., Los Angeles, CA, Counsel for Fremont General.

Klehr Harrison, Harvey & Branzburg & Ellers LLP, by Carolyn Hochstadter Dicker, Esq., Morton R. Branzburg, Esq., Philadelphia, PA, Counsel for Fiserv Securities, Inc.

Bialson Bergen & Schwab, by Lawrence M. Schwab, Esq., Kenneth T. Law, Esq., Patrick M. Costello, Esq., Palo Alto, CA, Martin P. Ochs, by Martin P. Ochs, Esq., New York, NY, Counsel for Veritas Software Investment Corp.

Farrell Fritz, P.C., by Ted A. Berkowitz, Esq., David Scheffel, Esq., Uniondale, NY, Counsel for Lewis and Clark College.

Vorys, Sater, Seymour And Pease LLP, by Robert J. Sidman, Esq., Columbus, OH, Counsel for the Abercrombie & Fitch Defendants.

Blank Rome LLP, by Andrew B. Eckstein, Esq., New York, NY, Co-Counsel for the Abercrombie & Fitch Defendants.

Anderson Kill & Olick, P.C., by Michael J. Venditto, Esq., Paul A. Rachmuth, Esq., New York, NY, Hughes & Luce LLP, by Sabrina L. Streusand, Esq., G. James Landon, Esq., Austin, TX, Co-Counsel for the Dell Products Defendants.

Riddell Williams P.S., by Robert Amkraut, Esq., Seattle, WA, Counsel for Electroimpact, Inc.

Balber Pickard Battistoni Maldonado & Van Der Tuin PC, by Thomas P. Battistoni, Esq., Mary Jane Wagg, Esq., New York, NY, Co-Counsel for Electroimpact, Inc.

Drinker Biddle & Reath LLP, by Andrew C. Kassner, Esq., David B. Aaronson, Esq., Philadelphia, PA, Counsel for AIM.

Robinson & Cole LLP, by Joseph L. Clasen, Esq., Christopher J. Major, Esq., New York, NY, Holland & Hart LLP, by Donald D. Allen, Esq., Larry E. Prince, Esq., Denver, CO, Counsel for Winco Foods, Inc.

Chadbourne & Parke LLP, by Howard Seife, Esq., Thomas J. Hall, Esq., Andre Rosenblatt, Esq., New York, NY, Counsel for Brahms Funding Corp. and Dresdner Bank AG.

Allen & Overy, by Daniel P. Cunningham, Esq., Hugh McDonald, Esq., Joshua D. Cohn, Esq., New York, NY, Counsel for The Bond Market Association.


MEMORANDUM OPINION DENYING DEFENDANTS' MOTIONS TO DISMISS COMPLAINTS

ARTHUR J. GONZALEZ, Bankruptcy Judge.

The issue presented is whether payments made by various entities in connection with certain transactions involving short-term commercial paper are "settlement payments" within the context of 11 U.S.C. § 546(e) which would, as a matter of law, preclude the relief sought by the plaintiff in the adversary proceedings and warrant dismissal of such...

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