Enron payouts to limited shareholders

Not all Enron shareholders who lost money by investing in the scandal-ridden U.S. company are receiving a piece of the $7 billion payout, lawyers say.

The Houston Chronicle reported Tuesday that some investors have received rejection letters rather than money covering a portion of their losses.

To be eligible, for a share of the bankruptcy payout, claimants must have at least bought Enron stock between Sept. 9,

1997, and Dec. 2, 2001, and have lost money on the investments.

But gains from sales of the energy company’s stock during the eligibility period, among other factors, could reduce or cancel losses, said Peter Crudo, spokesman for Petaluma, Calif.-based Gilardi & Co., the claims administrator.

The allocation plan was approved by U.S. District Judge Melinda Harmon in Houston last September also says the price at which stock was purchased affects the allowable loss, which is used to calculate a payout.

John Reese, a 30-year pipeline employee of Enron and its predecessors was among those who have received a letter stating that the claims administrator would recommend his claim be rejected.

The nightmare of Enron continues for us, he said.