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In re Enron Corp.

United States Bankruptcy Court for the Southern District of New York

October 21, 2003, Decided

Chapter 11, Case No. 01-16034 (AJG) (Jointly Administered)

Opinion

 [*204] Memorandum Decision and Order Regarding Motion of Matthew B. Arnold for Allowance and Payment of Administrative Expense Claim

ARTHUR J. GONZALEZ

United States Bankruptcy Judge

I. Introduction

On December 16, 2002, Matthew B. Arnold ("Claimant" or "Arnold") filed a Motion [*205]  (the "Motion") for Allowance and Payment of Administrative Expense Claim in this Court, pursuant to which Claimant seeks payment of: (i) a $ 50,000 retention bonus (the "Retention Bonus"); (ii) a $ 112,499.98 termination payment (the "Termination Payment"); and (iii) costs [**2]  and attorney's fees, arising from an employment agreement between himself and Enron Global Markets LLC, a subsidiary of Enron Corp. ("Enron Global Markets"). Enron Corp. and its affiliated debtors are, collectively, a large, multifaceted national and international energy corporation with operations, including energy trading operations, and financial interests across the United States and around the world. Enron Corp. and its affiliated debtors, as debtors-in-possession, and the Official Committee of Unsecured Creditors of Enron Corp. and its affiliated debtors, as debtors-in-possession (the "Committee"), each filed an objection to the Motion on February 10, 2003 (together, the "Objections"). A hearing was held with regard to the Motion on March 6, 2003 (the "Hearing").

II. Factual Background

Arnold began working for Enron Capital & Trade Resources, Corp. ("Enron Capital & Trade") in September 1997 as an analyst in the power marketing group. In March 1998, he transferred to Enron Capital & Trade's coal trading group where he worked for three years. Arnold entered into an Employment Agreement (the "Employment Agreement") with Enron Global Markets, effective as of March 1, 2001 (the [**3]  "Effective Date"), with an expiration date of February 28, 2003 (the "Expiration Date"). In May 2001, Arnold became the head of trading for Enron Freight Markets.

On December 2, 2001 (the "Enron Petition Date"), Enron Corp. and certain of its affiliated debtor entities, including Enron Capital & Trade and Enron Global Markets (collectively, "Enron," the "Company" or the "Debtors"), filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code"). Since the Enron Petition Date, Debtors have continued to operate their businesses as debtors-in-possession pursuant to § 1107(a) of the Bankruptcy Code.

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300 B.R. 201 *; 2003 Bankr. LEXIS 1346 **; 42 Bankr. Ct. Dec. 5

In re: ENRON CORP., et al., Debtors.

Disposition:  [**1]  Motion for Allowance and Payment of Administrative Expense Claim was denied.

CORE TERMS

Claimant, termination, Bonus, termination payment, employment agreement, Retention, notice, automatic stay, material breach, Markets, post-petition, terms of employment, involuntary termination, Letters, severance payment, base salary, severance pay, trading, administrative expense, termination of employment, provisions, Carve, property of the estate, involuntarily, liquidation, damages, salary, terms, earn, void

Bankruptcy Law, Unsecured Priority Claims, Administrative Expenses, Estate Preservation, Types of Claims, General Overview, Priority, Priority, Taxes, Business & Corporate Compliance, Contracts Law, Standards of Performance, Creditors & Debtors, Estate, Gift & Trust Law, Estate Administration, Evidence, Burdens of Proof, Claims, Definitions, Labor & Employment Law, Employment Contracts, Conditions & Terms, Civil Procedure, Federal & State Interrelationships, Choice of Law, Preliminary Considerations, Trials, Jury Trials, Province of Court & Jury, Contracts Law, Contract Interpretation, Administrative Powers, Automatic Stay, Duration of Stay, Executory Contracts & Unexpired Leases, Bankruptcy, Estate Property, Contents of Estate, Types of Contracts, Executory Contracts, Relief From Stay, Probate, Personal Representatives, Violations of Stay, Void & Voidable Actions, Employment Relationships, Breaches, Case Administration, Notice, Entry of Judgments, Stays of Judgments, Automatic Stays, Scope of Stay, Time Limitations, Powers to Assume & Reject, Procedural Matters, Settlements, Releases From Liability, General Releases, Collective Bargaining & Labor Relations, Labor Arbitration, Discipline, Layoffs & Terminations, At Will Employment, Remedies, Equitable Relief