Enron payout verdict is delayed

A US COURT today delayed its verdict on a request by JP Morgan Chase for immediate payment of the $965m (£675m) insurance claim it has made in relation to Enron.

Morgan claims it is owed the money as a result of Enron's failure to make the oil and gas deliveries required under a contract struck by the pair.

It sued 11 insurers, including Chubb and Citigroup, in an effort to recover what accounts for about half the bank's exposure to the failed energy group.

But the insurers claim they did not understand the deals they were covering. They have alleged the contract was part of an undisclosed loan from Morgan to Enron, rather than a genuine commodity trade, and the insurance is invalid. Federal Judge Jed Rakoff said he hoped to make a decision by the end of next week