Royal Bank announced Tuesday that it will receive US$195 million plus interest in a settlement agreement with bankrupt Enron Corp., the Enron creditors’ committee and Rabobank.

The bank said the settlement involves proceeds from the sale of 11.5 million shares of stock in EOG Resources in the so-called Cerberus transaction that closed in November 2000.

In a subsequent swap agreement, Rabobank was to assume the credit risk of the transaction and was required to pay RBC US$517 million n June 2002, Royal Bank said in a news release.

“A week before that payment was due, Rabobank defaulted and that matter is currently the subject of litigation between RBC and Rabobank,” the bank said.

After Enron filed for bankruptcy, the EOG shares were sold in the fall of 2002 and the proceeds of US$440 million were placed in a segregated escrow account pending the resolution of claims.

Royal Bank said it is still pursuing the rest of the US$517 million it feels it is owed.

The settlement is subject to court approval by September 5.