August 30, 2002 – Under a deal approved Friday by a bankruptcy judge, Dynegy Inc. will pay Enron Corp. $25 million to settle a lawsuit stemming from the canceled merger of the two companies.
Enron had sued Dynegy for $10 billion after it backed out of a merger in November, Dow Jones reported. Enron had claimed that Dynegy was trying to ruin the company by backing out.
Dynegy also has agreed not to pursue claims surrounding its acquisition earlier this year of the Northern Natural Gas Co. pipeline from Enron, and $62.9 million in escrowed funds will be released to Enron for the sale of the pipeline.
Dynegy has already sold the Northern Natural Gas pipeline to MidAmerican Energy for $2 billion.