Troubled US utility Enron paid out $55 million (€62 million) in bonuses to about 500 employees prior to filing for bankruptcy, the New York Times reported Thursday, citing several people who had dealings with the company. Enron spokesman Mr Mark Palme told the daily the bonuses were paid as "retentive incentives" for crucial employees, the paper reported.

Bankruptcy lawyer Mr James Feder was quoted as saying the payments made by Enron "are substantially high," and that it would probably become an issue in the bankruptcy case.