Insurers pay out on Enron

North America

AIG and Chubb Corporation have agreed to pay up to US$300mn to investors in a gas-buying consortium after a unit of bankrupt company Enron failed to complete a delivery of gas. The energy deal between the consortium and Enron North America had been protected by surety bonds, which pay out if a project is not carried out. Several surety bonds are likely to be be called in following Enron’s collapse.