Posted on 12/29/2001 12:12:26 AM PST by deport
Dec. 27, 2001, 11:57PM
Enron defends timing of checks for Democrats
By DAVID IVANOVICH
Copyright 2001 Houston Chronicle Washington Bureau
WASHINGTON -- Just days before Enron Corp. landed in bankruptcy court, the one-time political powerhouse may still have been funneling campaign dollars to Democratic lawmakers, federal election records indicate.
As Enron executives were scrambling to salvage a deal with Houston-based Dynegy in a vain effort to stave off bankruptcy, the Democratic Senatorial Campaign Committee received three checks from the Houston-based energy and trading giant totaling $100,000, Federal Election Commission records show.
The contributions were collected on Nov. 26, according to the committee's report to the FEC, six days before Enron sought protection under Chapter 11 of the U.S. Bankruptcy Code.
Karen Denne, an Enron spokeswoman, said the company had a record of two checks written to the committee -- dated Sept. 24 and Nov. 2 -- totaling $100,000. Denne said the Sept. 24 check was to help sponsor a conference titled Creating the Innovation Economy, an event postponed because of the Sept. 11 terrorist attacks.
Whatever the date or number of checks, the company's campaign contributions represented commitments made long before bankruptcy was an issue, said Robert Bennett, a Washington attorney representing Enron.
"This was all done as part of the routine budgeting process and was in queue well before things starting turning bad," Bennett said.
"They are the kind of contributions which are typically made by most companies, and it would be very unfair to attribute an improper motive to them," said Bennett, who represented former President Clinton in the Paula Jones sexual harassment case.
When the committee received the checks, Senate Democrats were busy crafting an energy bill, their response to a national energy strategy proposed by the White House and passed by the Republican-controlled House. The Democrats finally unveiled their energy legislation on Dec. 5.
Steven Weiss, spokesman for the Center for Responsive Politics, a political watchdog group, called the contributions "a desperate attempt by a company in big trouble to a make some friends on Capitol Hill."
"The contribution was made so late in the game, at such a sensitive time, it's hard to believe that anybody at Enron thought it wouldn't be discovered and seen for what it is," Weiss said.
The Democratic Senatorial Campaign Committee's office was closed Thursday, and a spokeswoman could not be reached for immediate comment.
Spokeswoman Tovah Ravitz-Meehan told the Associated Press the committee plans to give the money to charity.
Enron could use any friends it can find here in Washington. The Justice Department, the SEC and the Labor Department, as well as a number of congressional panels, are investigating the company's spectacular implosion.
Before its fall, however, Enron was one of the most politically influential corporations in Washington, thanks largely to its munificent campaign contributions.
During the 1999-2000 election cycle, Enron donated more than $2.4 million to individual candidates, political action committees and the parties, ranking among the top 50 organizational donors, the Center for Responsive Politics noted.
In all, 71 sitting senators have received money from Enron, the center said.
President Bush was a frequent recipient of Enron's largesse. In fact, Enron Chief Executive Officer Ken Lay ranks as one of the largest contributors to Bush's political career.
During the first nine months of this year, Enron contributed $173,000, with about 90 percent of that money going to Republicans, the center noted.
The Democrats gained new political clout last spring, when the defection of Vermont Sen. James Jeffords gave them control of the Senate.
Dec. 27, 2001, 11:36PM
Enron filing fouls severance deals
By L.M. SIXEL
Angelique Chappell is finding that it's hell to get caught up in a bankruptcy.
Chappell worked for Enron Corp. until she lost her job in mid-November. She had expected $12,599 in severance pay in mid-December, but before she got a check, Enron filed for bankruptcy.
Chappell is now stuck in limbo. While most of the 4,500 Enron employees who lost their jobs earlier this month received $4,500 severance checks, employees like Chappell who lost their jobs before Enron filed for bankruptcy ended up with nothing.
And now they're waiting in line behind other creditors. Chappell figures it will take six to 12 months to get anything resolved and doesn't know what she'll end up with.
Her severance agreement with Enron states that she can't file any claims against the company, so she's scared to death to file for unemployment compensation. But as her bills pile up, she desperately needs the money that unemployment insurance would provide.
Dec. 28, 2001, 12:29AM
As banks seek cash, Enron's financing deadline extended
Dow Jones News Service
NEW YORK -- A deadline to finalize a $1.5 billion financing package to help get Enron Corp. back on its feet has been pushed back to Jan. 30.
The financing, known as debtor in possession, or DIP, is critical for Enron to continue operating now that the energy trader has filed for Chapter 11 protection in the U.S. Bankruptcy Court's in New York's southern district.
Enron's lead banks, J.P. Morgan Chase & Co. and Citigroup, first agreed to arrange the loan for Enron on Dec. 3, a day after the company filed for bankruptcy. But the two banks have since been laboring to find other financial firms willing to help them foot the bill. So far, a $250 million installment has been made available to Enron. Final approval of the financing package was originally scheduled for Jan. 7.
The DIP is contingent on a number of conditions, including its full syndication; the filing for bankruptcy of one of Enron's prized assets, the Transwestern Pipeline; and the approval by the bankruptcy court and the lead lenders of a new business plan.
ROFLOL...Actually, it is my fondest hope that MurryMom is back at the DU, where he/she belongs.
Hmmmm. Interesting that they would close an article about Demoncrats getting campaign contributions just before bankruptcy with a note about President Bush (R). ;)
< /sarcasm>
BTW, how much of the $3 million + that ENE gave to little Dumbya did the puny presidential pretender contribute to charity?
Noble and will make them some good press, but I question if it can be done. That kind of money may well have to come back to the creditor's pot to be split up... I don't know the bankruptcy laws but that may well be considered preferred treatment of a payee.
Before the contributions to the Democrats, Enron this year had contributed $173,000 to candidates and parties, with almost 90% going to Republicans.
Since the 1989-90 election cycle, Enron has made nearly $5.8 million in campaign contributions, 73% to Republicans.
Enron's ties to Republicans and the present Bush administration were especially close. Lay raised large sums for George W. Bush's campaign.
Enron, Lay and its employees have contributed $572,350 to him over his career, far more than any other company, according to the Center for Public Integrity in Washington.
Several top administration officials have been Enron advisers or stockholders. Enron, Lay and other senior executives contributed $1.7 million in soft-money donations to politicians in the 2000 election cycle, two-thirds of it to Republicans, according to the Center for Responsive Politics.
Republicans clearly are sensitive to the potential political dangers. The National Republican Senatorial Committee recently returned a $100,000 check collected from Enron in November, after deciding that "it was appropriate to give it back," spokesman Dan Allen said. The Republican Governors Association last week returned an Enron donation of $60,000.
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