Enron Claims Ruling Overturned

A federal judge in New York has overturned a ruling in Enron bankruptcy litigation that had caused consternation on Wall Street.

U.S. District Judge Shira Scheindlin ruled that good-faith purchasers of claims against bankrupt companies should not be penalized under bankruptcy laws, the Wall Street Journal reports (sub. req.).

A contrary ruling by a bankruptcy judge "threatened to wreak havoc on the markets for distressed debt,” she wrote.