Court Delays On Andersen Sale Motion

By E.E. Mazier

No Ruling On Andersen Sale Motion

NU Online News Service, April 8, 2:30 p.m. EST?The move by insurers to prevent accounting firm Arthur Andersen LLP from selling off its assets failed to produce results today.

A spokesperson for U.S. District Judge Melinda Harmon in Houston said that there was no ruling on the plaintiffs' motion and that the matter has been continued to April 17.

The insurers, involved in a lawsuit over the collapse of Enron Corp., want Judge Harmon to prevent Andersen from getting rid of assets to which they otherwise might be entitled.

They contend the accounting firm may try to shield its assets from liability in a larger civil action against Enron, which collapsed after the revelation of questionable financial practices in which Andersen allegedly was complicit.

Judge Harmon scheduled today's hearing shortly after Andersen announced that it would sell most of its non-auditing businesses and adopt a rescue plan formulated by former Federal Reserve Chairman Paul Volcker.

Under the plan, the firm reportedly would sell off its U.S. tax practice and waive application of the non-compete clauses found in contracts with its partners and tax professionals in specific units. The waiver would allow other accounting firms to hire Andersen personnel without fear of a lawsuit from Andersen.

The plaintiffs include American National Insurance Co. (Galveston); Standard Life and Accident Insurance Co. (League City, Texas); Farm Family Life Insurance Co. (Glenmont, N.Y.); and National Western Life Insurance Co. (Austin).

Andersen is under federal indictment on obstruction of justice charges stemming from its alleged shredding of Enron documents subpoenaed by the Securities and Exchange Commission.

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Court Delays On Andersen Sale Motion

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