The Connecticut Resources Recovery Authority (CRRA), a semi-public agency which handles trash for the state, confirmed that it is selling the claims. CCRA lost approximately $220 million on this failed contract with Enron and decided to put the claim for sale in the market, the spokesman explained. The waste company has decided not to wait for the end of the bankruptcy process to get a settlement for the claim. We are trying to maximize our return, he stated.
The expected bankruptcy settlement for the claim is $82.7 million. As part of the settlement, there is also an equity component. CCRA does not want equity in PRISMA, the name for the restructured Enron.