Milbank pays out to Enron debtors

Milbank Tweed Hadley & McCloy has repaid $216,000 (£134,500) to Enron debtors after court-appointed examiner Neal Batson found that the payment could be regarded as a preferential transfer

Along with Milbank, the report also names Andrews & Kurth, Cadwalader Wickersham & Taft, Skadden Arps Slate Meagher & Flom and Susman Godfrey as firms that received payments in the 90-day period before the petition date that could be considered preferential.

Milbank had made an agreement to be bound by the examiner's preference determination, thereby waiving the right to challenge that determination, and accordingly repaid the money in January.

The payment is not an admission by Milbank that it received an avoidable transfer.

In total, the monies paid to all five firms total $635,000 (£395,400), with Milbank's being by far the most significant chunk. However, the report notes that all of the firms have the right to assert one or more affirmative defences.

Cadwalader and Andrews & Kurth declined to comment. Skadden, Susman Godfrey and Milbank could not be reached for comment.