ALBANY — The New York State Court of Appeals ruled Chase Manhattan Bank wasn’t obligated as a trustee for Enron noteholders to make sure information in the failed energy giant’s reports was accurate.
The state’s highest court on Thursday said Enron simply was required to forward the reports on transactions and assets that it filed with the Securities and Exchange Commission.
Enron filed for bankruptcy in December 2001 following an accounting scandal, 10 months after signing the Chase indenture agreement.
Racepoint Partners and Willow Capital-II, which later bought about $1 billion of notes, filed a breach-of-contract suit against Chase. They claimed Enron defaulted under the indenture agreement and Chase knew and failed to tell noteholders.
The suit was dismissed with Thursday’s ruling.