Enron Partnership Files for Chapter 11
LJM2 Co-Investment, an Enron Corp. partnership used to keep debt off the energy trader’s books, said it filed for bankruptcy protection in the face of lawsuits seeking to recoup at least $70 million in loans.
LJM2 officials said they filed for Chapter 11 protection in U.S. Bankruptcy Court in Dallas because of suits brought earlier this year by a unit of Dresdner Bank and other lenders over the partnership’s failure to pay back loans.
The lawsuits contend LJM2 investors removed Michael J. Kopper, the former Enron executive who ran the entity, and illegally changed the partnership agreement to get out of having to repay the loans.
Kopper pleaded guilty in August to fraud and money laundering in connection with financial maneuverings that led to Enron’s bankruptcy filing in December.
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