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Citi reaches settlement agreement with Enron

Citi has reached settlement agreements resolving the two remaining claims against Citi arising out of the collapse of Enron Bankruptcy Estate in 2001.

Both settlements are covered by Citi’s existing litigation reserves. The Enron Bankruptcy Estate (Enron) had filed bankruptcy and fraud claims against Citi in the US Bankruptcy Court in New York totaling approximately $21 billion. Under the terms of the settlement agreement, Citi will pay $1.66 billion to Enron and withdraw certain claims in the Enron bankruptcy proceeding.

Enron will release all of its claims against Citi and certain other parties. Enron will also allow specified Citi-related claims in the bankruptcy proceeding, including all of the bankruptcy claims of parties holding approximately $2.4 billion of Enron credit-linked notes (CLNs).

Citi reached a separate settlement agreement resolving all disputes with the holders of the CLNs, including a suit against Citi pending in the Federal District Court in Houston.