In Re Enron Corp.

MEMORANDUM DECISION REGARDING MOVANTS’ REQUEST TO TRANSFER VENUE TO THE SOUTHERN DISTRICT OF TEXAS

The issue before the Court is whether venue of these bankruptcy cases should be transferred from the Southern District of New York to the Southern District of Texas. Motions to transfer venue were filed by Dynegy, Inc. (and its affiliates), Statex Petroleum, Inc., Packaged Ice, Inc. (and its affiliates) and EC Power (collectively, “Dynegy”); Petro Hunt, L.L.C., Tenaska Marketing Ventures, Pioneer Resources USA, Inc., Pure Resources, Inc., Spinnaker Exploration Company, Equiva Trading Company, Shell Chemical Risk Management Company, Shell Chemical LP, and Dunhill Resources I, LLC (collectively, “Dunhill”); 1 Pamela M. Tittle, Thomas 0. Padgett and Gary S. Dreadin, on behalf of themselves and a class of other persons similarly situated; Southern Ute Indian Tribe d/b/a Red Willow Production Company; and joinder motions filed by Reliant Energy Services, Inc.; Anning Johnson Company, Contour Energy Co., PDM Strocal and Phillips Petroleum Company; El Paso Merchant Energy L.P.; the Texas Comptroller of Public Accounts, Texas Workforce Commission, Texas General Land Office and Texas Natural Resource Conservation Commission; the Florida State Board of Administration; and EXCO Resources, Inc. (in the aggregate, the “Movants”).

Opposition and statements in support of opposition to transfer venue were filed by the Debtors (as defined hereinafter); the Official Committee of Unsecured Creditors; JP Morgan Chase Bank & Co.; Citibank, N.A. and Citicorp USA, Inc.; Bar-clays Bank Pic and Barclays Physical Trading Limited; Industrial Bank of Japan Trust Company; Sumitomo Mitsui *333 Banking Corporation; Westdeutsche Lan-desbank Girozentrale; Abu Dhabi International Bank Inc.; Dresdner Bank A.G.; The Bank of New York; KBC Bank NV; Fleet National Bank; First Union National Bank; IntesaBci S.p.A; Banca Nazio-nale Del Lavoro; Bank of Tokyo Mitsubishi, Ltd.; Bank Hapoalim B.M.; St. Paul Fire and Marine Insurance Company, Continental Casualty Company, National Fire Insurance Company of Hartford, Federal Insurance Company, Fireman’s Fund Insurance Company, Travelers Casualty & Surety Company, Travelers Indemnity Company, Liberty Mutual Insurance Company, Safeco Insurance Company of America, Hartford Fire Insurance Company, and Lumbermens Mutual Casualty Company.

The Debtors and most of the Movants stipulated to facts which are expressly undisputed. The Court’s findings of fact are derived from the parties’ Limited Stipulation of Facts for the Purposes of a Hearing on the Motion to Change Venue to the Southern District Of Texas (“Limited Stipulation of Facts”), filed on January 7, 2002 (doc. entry # 706), the evidence at the hearing, and from the entire record of the Debtors’ cases and other matters of which this Court may take judicial notice. The Court held a hearing on the motions to transfer venue and opposition thereto on January 7, 2002. The record of that hearing was supplemented by a letter, dated January 8, 2002 (doc. entry # 784), submitted by Dunhill’s counsel, designating portions of the deposition dated January 4, 2002 of Louis Colarusso, controller of Enron Metals & Commodities Corp. (Dunhill Exhibit # 1). The record was further supplemented by a letter, dated January 8, 2002 (doc. entry # 770), submitted by Debtors’ counsel designating additional portions of the Colarusso deposition and responding to Dunhill’s argument regarding Dunhill’s designated portions of the deposition.

Enron Metals & Commodity Corp. (“EMC”), Enron Corp., BAM Leasing Company, ENA Asset Holdings, L.P., Enron Broadband Services, Inc., Enron Energy Marketing Corp., Enron Energy Services Operations, Inc., Enron Energy Services, Inc., Enron Energy Services L.L.C., Enron North America Corp., Enron Power Marketing, Inc., Enron Transportation Services Company, PBOG Corp., Smith Street Land Company, Enron Engineering & Operational Services Company, Enron Engineering & Construction Company, Enron Net Works L.L.C., Enron Industrial Markets LLC, Enron Global Markets LLC, Enron Gas Liquids, Inc., Operational Energy Corp., Garden State Paper Company, LLC, Enron Federal Solutions, Inc., EESO Merchant Investments, Inc., Enron Energy Information Solutions, Inc., Tenant Services, Inc., Enron Broadband Services, L.P., Enron Freight Markets Corp., Palm Beach Development Company, L.L.C, and Enron Energy Services North America, Inc. (the “Debtors”) 2 filed Chapter 11 cases in the United States Bankruptcy Corut for the Southern District of New York beginning on December 2, 2001 (the original 14 debtor filings) and continuing on various dates thereafter. The Debtors’ cases are jointly administered under Case No. 01-16034.

*334 FACTS

GENERAL BACKGROUND INFORMATION

Enron 3 is a large, multifaceted national and international corporation with operations, financial interests, creditors and stockholders across the United States and around the world. Enron Corp., an Oregon corporation, is a holding company of subsidiaries engaged in the wholesale and commodity market business, telecommunications and insurance. The Debtors divide their business operations into five primary business units: Enron Wholesale Services, Enron Retail Services, Enron Transportation Services, Enron Global Services and Enron Broadband Services. Enron’s wholesale business unit, which includes marketing and trading of energy and other commodities, is Enron’s core operation and main profit driver. During the past year, Enron maintained the world’s largest online energy trading site (EnronOnline) and was the world’s largest trader of electricity and natural gas.

Enron is currently directing those interested in doing business with Enron to make trades strictly via telephone and has temporarily suspended internet trading operations. These telephones are all operated in Portland, Oregon and Houston, Texas. None of the Debtors own real property located in New York. With the exceptions of Garden State Paper Company, LLC, EMC and Operational Energy Corp., all of the Debtors have identified their principal place of business as being Houston, Texas.

With two exceptions, the Debtors are organized under the laws of Oregon, California or Delaware. One Debtor is organized under the laws of Texas and another is organized under the laws of Pennsylvania. None of the Debtors is organized under the laws of New York.

All or substantially all of certain of the Debtors’ corporate books and records (such as corporate minute books) are located at the corporate headquarters of Enron Corp. in Houston.

THE DEBTORS’ PENDING LITIGATION AND INVESTIGATIONS

There were 27 litigation matters pending against Enron in New York at the time of Enron’s most recent 10K disclosure. None of those matters were listed by Enron under the section requiring disclosure of material litigation.

On December 2, 2001, an adversary proceeding in these cases entitled Enron Corp., Enron Transportation Services Co., CGNN Holding Co., Inc. and MCTJ Holding Co. LLC v. Dynegy Inc. and Dynegy Holdings Co., Inc. was commenced in New York. On December 3, 2001, Dynegy coun-tersued in a Texas State Court in Houston. Both suits are breach of contract actions involving contracts governed by the laws of the State of Texas.

On November 13, 2001, a class-action lawsuit was filed against Enron and others in the United States District Court for the Southern District of Texas on behalf of the participants in the Enron Corp. Savings Plan (the “Enron 401(k) Plan”). The action is styled and numbered Tittle et al. v. Enron Corp., et al, Case No. H-01-3913, and has been consolidated with at least eight other ERISA class actions filed against Enron Corp. in Texas (the “ERISA Action”). In the Tittle lawsuit, the plaintiffs allege, among other things, that under ERISA: (1) Enron is a fiducia *335 ry of the Plan; and (2) Enron and the other fiduciaries breached their duties to the participants and beneficiaries of the Plan in a variety of ways. The Enron 401(k) Plan that is the subject of the Tittle lawsuit provides that “[a]ll provisions of the Plan shall be construed in accordance with the laws of Texas except to the extent preempted by federal law.” The ERISA Action is stayed as to Enron Corp. pursuant to the automatic stay imposed by Section 362 of title 11 of the United States Code (the “Bankruptcy Code”).

A number of Congressional committees, federal agencies, commissions, and departments have requested information and are conducting hearings and investigating Enron.

THE DEBTORS’ MANAGEMENT, OFFICERS AND DIRECTORS

Approximately fifty-five current or former officers of Enron Corp. reside in Houston, Texas or in the Southern District of Texas. Among the Debtors, only the Board of Enron Corp. includes outside directors. All of the directors of the other Debtors are inside directors who are also employees of one or more of the Debtors. Most of these inside directors hold the title of Director for numerous Enron entities and most inside directors reside in Houston, Texas or elsewhere in the Southern District of Texas.

THE CREDITORS

The Debtors provided to Movants the best available accounts payable listing from their business records showing vendors of the Debtors who were owed money and their locations. The category of vendors is one of several general categories of creditors. The listing was subject to correction and does not contain other types of creditors, including the following:

a. counterparties to swaps, hedges and physical contracts;

b. bank and lending debt;

c. Enron corporation’s public bond debt;

d. former employee claims; and

e. governmental unit claims

Further, the listing contains inter-company debt. The parties each presented summary charts related to this information to the Court.

Enron Corporation’s largest unsecured creditor is JP Morgan Chase (formerly Chase Manhattan Bank, at times referred to interchangeably) with an unsecured claim of $1.907 billion. At the time the debt was incurred, the office of Chase Manhattan Bank, in Houston, had responsibility for the loan. Chase Manhattan Bank’s principal offices are in New York City and it is represented in the bankruptcy proceedings by New York counsel. Beginning at least several weeks before the Chapter 11 filing, the New York office of Chase assumed responsibility for the loan.

The Official Committee of Unsecured Creditors (the “Committee”) is comprised of fifteen members. Of those fifteen members, six are located in New York City and three are located in Texas. The other six members of the Committee are located in Ohio, Canada, Minnesota, Maryland, California and Oklahoma. The following creditors have been appointed pursuant to 11 U.S.C. § 1102(a) and (b) to the Committee, effective December 12, 2001:

1. JP Morgan Chase & Co. (formerly Chase Manhattan Bank) New York, New York

2. Citigroup/Citibank New York, New York

*336 3. ÁBN AMRO Bank New York, New York

4. Credit Lyonnais New York Branch New York, New York

5. Credit Suisse First Boston New York, New York

6. National City Bank as Indenture Trustee Cleveland, Ohio

7. Silvercreek Management, Inc. Toronto, Ontario

8. Oaktree Capital Management, LLC Los Angeles, CA

9. Wells Fargo Bank Minnesota, N.A., as Indenture Trustee Minneapolis, MN

10. The Bank of New York, as Indenture Trustee New York, New York

11. St. Paul Fire and Marine Insurance Company Baltimore, MD

12. National Energy Group, Inc. Dallas, Texas

13. Duke Energy Trading and Marketing, LLC Houston, Texas

14. Mr. Michael P. Moran, individually and as representative Montgomery, Texas

15. The Williams Companies, Inc. Tulsa, OK

Wells Fargo Bank Minnesota, N.A., as Indenture Trustee, located in Minneapolis, and .The Williams Companies, Inc., located in Tulsa, Oklahoma, are the co-chairs of the Committee.

Enron Corporation’s two largest secured creditors, Citibank, N.A. and Chase Manhattan Bank (now, JP Morgan Chase), have offices located in Houston, Texas, which had responsibility for administering the credit facility.

Enron Corporation has obtained a new $1,000,000,000 secured line of credit from JP Morgan Chase & Co. and Salomon Smith Barney secured by the assets of Transwestern Pipeline Company and Northern Natural Gas Company.

On January 3, 2002, a Revised List of Creditors Holding 20 Largest Unsecured Claims was filed for Enron Corp. The Revised List differed from the list that was attached as an exhibit to the Limited Stipulation of Facts in that three listings relat *337 ing to two entities were deleted after it was determined that those entities were insiders. Additionally, the Debtors represented at the hearing, and Wells Fargo Bank Minnesota, N.A. confirmed, that Chase Manhattan Bank, Houston, Texas (Trustee) withdrew as indenture trustee and was substituted by Wells Fargo Bank Minnesota, N.A. As a result, Enron Corp. lists seventeen largest creditors, which are comprised of ten creditor listings in New York, three in the United Kingdom, two in South Dakota, one in Minnesota, one in Italy and none in Texas. 4 The ten creditor listings for New York include multiple listings of the Bank of New York, as Indenture Trustee with respect to several separate indentures, each of which has a separate group of bond or noteholders, who are located across the country.

Indenture Trustees for the holders of the prepetition notes of Enron Corp. and the agent banks for its prepetition credit facilities are as follows:

a. Bank of New York, New York City, New York;

b. Citibank, N.A., Sioux Falls, South Dakota Corp., Headquarters in NY;

c. Wells Fargo Bank Minnesota, N.A. (Trustee); 5

d. Chase Manhattan Bank, London, United Kingdom; and

e. Banca Commerciale Italiana S.p.A, Piazza della Scala, Milan, Italy

With respect to the Indenture Trustees, there are twenty-five outstanding indentures of bonds or notes.

THE DEBTORS’ EMPLOYEES

As of December 2, 2001, the bankruptcy petition date, Enron Corp. and its affiliates employed approximately 25,000 full and part time employees worldwide (approximately 7,000 hourly wage employees and approximately 18,000 salaried employees). Just before the petition date, as of December 1, 2001, over 7,500 employees worked at the Debtors’ Houston headquarters and resided in the Southern District of Texas. Approximately 7,000 employees worked worldwide. Of these employees, 5,496 were employees of the Debtors in these cases. Of these employees of the Debtors, 4,681 worked in Houston, and sixty-three of these employees of the Debtors worked in New York.

On December 3, 2001, Enron and its affiliates discharged approximately 60% (4,200) of their Houston employees. Since December 3, 2001, Enron has discharged an additional 200 of its Houston employees. Most of the Enron employees so discharged in the United States were employed in Houston. Enron has discharged twelve New York employees.

Currently, Enron and its affiliates employ a total of approximately 19,000 persons worldwide and approximately 3,000 of those employees work in Houston, Texas. Of these various employees, 1,687 are employed by the Debtors in Houston and fifty-seven are employed by the Debtors in New York. The remainder of the employees of the Debtors are located elsewhere.

Enron plans to provide severance benefits in an amount equal to $4,500 per severed employee, which will serve as a credit against accrued and unpaid wages, *338 amounts due under the severance plan Enron had in place at the time of termination of employment, and any Enron obligation pursuant to the Worker Adjustment Retraining Notification Act. The $4,500 severance benefit has been paid to those employees discharged on December 3, 2001. The severance payment of $4,500 is less than the monthly salary of some of the Houston employees who were laid off.

Approximately 12,000 of Enron’s employees participated in the Enron 401(k) Plan. As of January 2001, the Enron 401(k) Plan was composed mostly of Enron stock (61% of the 401(k) plan). Many employees have lost more than $100,000 of value in their 401(k) plans. Those persons whose retirement funds are in the Debtors’ 401(k) Plan are among the Debtors’ creditors. The Labor Department is investigating Enron’s handling of employee 401(k) plans. In addition, as previously noted, the ERISA Action is pending in Texas.

On November 30, 2001, Enron Corp. and/or its affiliates paid $55 million in bonuses to 587 of its “key employees.” The vast majority of these key employees are located in Houston.

Most of the Debtors’ real property is located in Houston. Subsidiaries of the Debtor, Enron Corp., own interstate pipelines. The amount of ad valorem taxes owed to Texas taxing authorities by Enron is $139,878,630.

THE BANKRUPTCY PROCEEDINGS

As part of its “first day” orders, the Debtors obtained an order from the Court authorizing the Debtors to enter into certain postpetition credit agreements (the “DIP Financing”) in order to, inter alia, provide outside parties confidence in the Debtors that will enable and encourage them to resume ongoing credit relationships with the Debtors. The Debtors have not needed to borrow any funds under the DIP Financing.

The managers, officers and executives listed in the Limited Stipulation of Facts, or their successors, are or will be responsible for the management of the business of the Debtors during the administration of these bankruptcy cases.

ENRON METALS & COMMODITY CORP.

EMC is a Delaware corporation with its principal place of business in New York, New York. EMC is engaged primarily in the business of commodities metals trading.

EMC’s Voluntary Petition identified the location of its principal assets as New York, New York. These assets consist, among other things, of the following:

a. furniture, fixtures and equipment, located at 520 Madison Avenue, New York, New York;

b. deposit accounts, located at Citibank, New York;

c. contracts, accounts receivable, and prepaid transactions, the payment of which is to be made to the following address: 520 Madison Avenue, New York, New York; and

d. trades in progress.

Using the asset values assigned by the Debtors on the date of filing, Enron Metals’ assets ($265,622,903) are less than 0.5% of the assets of the consolidated Debtors ($51,523,148,911).

EMC has approximately fifty-five employees working in New York, New York. EMC has three employees in St. Louis, five in Chicago and none in Texas. EMC’s auditors are located in New York. EMC’s corporate minute book is located in Houston. In addition, EMC has three directors on its board. One director resides in New York; the other two reside in Houston. *339 Of EMC’s eleven executives and officers, four reside in New York, six in Houston and one in London.

AFFILIATED DEBTORS (INCLUDING ENRON CORP.)

Of the twenty-eight affiliated debtors, including Enron Corp., twenty-six have their principal place of business located in Houston. For most of the affiliated debtors, including Enron Corp., the location of the principal assets and the location of the corporate books and records is also in Houston. 6 Nearly all of the executives and officers reside in Houston.

THE DEBTORS’ PROFESSIONALS

Debtors have retained the law firm of Weil, Gotshal and Manges LLP (“WGM”) to represent them in connection with their bankruptcy. WGM has its principal law offices in New York and also has offices in Houston and Dallas. WGM’s principal bankruptcy and restructuring department is based in New York. Both WGM’s Houston and Dallas offices have a corporate restructuring section and experienced bankruptcy practitioners.

The Debtors have employed Leboeuf, Lamb, Greene & MacRae, LLP (“LLG & M”) as special counsel. LLG & M has its principal office in New York and has an office located in Houston.

The Debtors have employed Andrews & Kurth LLP as special counsel to represent the Debtors in their bankruptcy. Andrews & Kurth’s principal office is located in Houston where it employs over 200 attorneys. Andrews & Kurth also has offices in New York.

Prior to their bankruptcy, the Debtors employed 145 lawyers in their Houston offices. As of May 2001, if Enron’s legal department in Houston were a private firm, it would have been Houston’s sixth-largest. Arthur Andersen LLP (“Arthur Andersen”) has worked as Enron’s outside auditor for more than ten years. Arthur Andersen accountants and consultants used to occupy an entire floor at Enron’s headquarters in Houston, Texas. Last year Arthur Andersen earned over $50 million for audit and consulting work it performed for Enron. The Houston office of Arthur Andersen has conducted the Enron audits since at least 1997.

FOREIGN INSOLVENCY PROCEEDINGS

A number of Enron affiliates are in insolvency, bankruptcy or administration proceedings worldwide.

ACCESSIBILITY OF NEW YORK

New York is one of the world’s most accessible locations. New York is served by three airports with international flights, as well as major rail stations making it accessible to parties in interest located worldwide. It is convenient with respect to both the diversity of locations served and the frequency of service provided.

New York is located over 1,600 miles from Enron’s corporate headquarters in Houston which is located a few blocks from the United States Bankruptcy Court for the Southern District of Texas. A round-trip flight from Houston to New York takes approximately seven hours. The average price of a roundtrip ticket from Houston to New York, full coach fare, is $1,807.85. No flights departing from Houston, Texas arrive in New York prior to 10:00 a.m. Eastern Time.

*340 REORGANIZATION PROCEEDINGS

There are six principal employees of the Debtors who are expected to be responsible for the financial restructuring and development of a plan of reorganization, and they are based in Houston. Other persons expected to be substantially involved are:

a. Representatives of Enron’s Canadian affiliates, who are located in Canada.

b. Representatives of Enron’s United Kingdom affiliates, who are located in the United Kingdom.

c. Additional representatives of other Enron affiliates around the world will likely be involved, but the specific affiliates have not yet been identified.

d. The Debtor’s outside professionals, including WGM, which is based in New York, and is principally staffing these cases with attorneys from its New York office. Also involved will be the Blackstone Group, financial advisors, who are based in New York; and Batchelder & Partners, financial advisors, who are based in San Diego. Subject to court approval, the Debtors are also retaining PricewaterhouseCoopers, through its New York office, as financial advisors.

e. The members of the Committee and their professionals. As previously noted, six of the fifteen members are located in New York, three in Texas. The Co Chairs are located in Minneapolis, Minnesota and Tulsa, Oklahoma. The Committee’s counsel, subject to court approval, is Milbank, Tweed, Hadley & McCloy, which is based in New York. The Committee’s financial advisors, subject to court approval, are Ernst & Young, through its New York office.

f. The principal financial institutions expected to be involved in the plan of reorganization and financial restructuring are JP Morgan Chase Bank and Citibank, both of which are based in New York. The attorneys for JP Morgan Chase are Davis, Polk & Wardwell, which is based in New York. The attorneys for Citibank are Shearman & Sterling, which is based in New York.

At the time the Limited Stipulation of Facts was prepared, the principal persons believed to have substantial knowledge of the matters at issue in the Enron/Dynegy adversary proceeding were the following:

a. Enron employees, all of whom are based in Houston: Ken Lay, Greg Whal-ley, Jeff McMahon, Raymond Bowen, Bill Brown, Stan Horton, Mark Muller and Mitch Taylor.

b. Representatives of J.P. Morgan Securities, Inc., based in New York, including Douglas Braunstein and James Elliott.

c. Representatives of Salomon Smith Barney based in New York, including Robert Hoglund, Gregg Polle and Alberto Verme.

d. Representatives of JP Morgan Chase based in New York, including Jimmie Lee and other persons to be identified in discovery proceedings.

e. Representatives of Citibank based in New York, including Michael Carpenter and other persons to be identified in discovery proceedings.

f. Representatives of Moody’s Investor Service based in New York, including Debra Perry, Peter Nerby, John Cassidy, John Diaz, Susan Abbot and possibly others to be identified in discovery proceedings.

g. Representatives of Standard & Poor’s based in New York, including John Biardello and Ron Barone and possibly others to be identified in discovery proceedings.

h. Representatives of Fitch IBCA based in New York, including Ralph Pel-lechia and possibly others to be identified in discovery proceedings.

*341 i. Representatives of Dynegy, believed to be based in Houston: Chuck Watson, Stephen Bergstrom, Rob Doty, Keith Fullenweider, Hugh Tarpley, and Jeff McParland.

j. David O’ Reilly of Chevron Texaco, based in California.

DISCUSSION

Section 1408 of title 28 of the United States Code governs venue in Chapter 11 cases. 28 U.S.C. § 1408 provides that a case under title 11 may be commenced in the district court for the district- — •

(1) in which the domicile, residence, principal place of business in the United States, or principal assets in the United States, of the person or entity that is the subject of such case have been located for the one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period than the domicile, residence, or principal place of business, in the United States, or principal assets in the United States, of such person were located in any other district; or

(2) in which there is pending a case under title 11 concerning such person’s affiliate, general partner, or partnership.

28 U.S.C. § 1408.

Under § 1408(1), a prospective debtor may select the venue for its Chapter 11 reorganization. Specifically, venue is proper in any jurisdiction where the debtor maintains a domicile, residence, principal place of business or where its principal assets are located for at least 180 days before the filing of the bankruptcy petition. Pursuant to 28 U.S.C. § 1408(2), venue is also proper for any affiliate 7 that files a bankruptcy petition within a venue where there is already a bankruptcy case pending under § 1408(1).

Applied here, EMC filed a petition under the Bankruptcy Code on December 2, 2001 and was assigned case number 01-16033. EMC maintains its business operations in New York City. EMC conducted its principal business of trading metals commodities out of the New York offices. There is no indication from the record that EMC has not conducted its trading operations for less than 180 days. Therefore, for purposes of venue under 28 U.S.C. 1408(1), the Court finds that EMC’s bankruptcy petition was properly venued in the Southern District of New York because EMC maintains its principal place of business within this district.

Enron Corp. is the holding company that directly or indirectly owns all the other Debtors. Immediately after EMC’s case was filed in this Court, Enron Corp., as an affiliate of EMC, filed its petition under the Bankruptcy Code on December 2, 2001 and was assigned case number 01-16034. Its selection of this venue was proper under 28 U.S.C. § 1408(2). Thereafter, the remaining Debtors filed petitions as affiliates of a case pending in this Court for which 28 U.S.C. § 1408(2) likewise provides a basis for venue. 8

*342 When venue is determined to be proper in the district where the bankruptcy case was filed, the case may nevertheless be transferred, on motion by a party, pursuant to 28 U.S.C. § 1412 which provides that:

A district court may transfer a case or proceeding under title 11 to a district court for another district, in the interest of justice or for the convenience of the parties.

See also Fed. R. Bankr.P. 1014(a)(1). 9 The bankruptcy court’s authority to exercise the district court’s power to transfer a case under 28 U.S.C. § 1412 stems from the district court’s referral of the case to the bankruptcy, court pursuant to 28 U.S.C. § 157(a). In re Waits, 70 B.R. 591, 594 (Bankr.S.D.N.Y.1987); In re Oceanquest, 56 B.R. 715, 718-19 (Bankr.D.Conn.1986). A motion to transfer venue is a core matter, as it concerns administration of the estate. Id.

The burden is on the movant to show by a preponderance of the evidence that the transfer of venue is warranted. See, e.g., Gulf States Exploration Co. v. Manville Forest Prods. Corp. (In re Manville Forest Products Corp.), 896 F.2d 1384, 1390 (2d Cir.1990); Commonwealth of Puerto Rico v. Commonwealth Oil Refining Co. (In re Commonwealth Oil Refining Co.), 596 F.2d 1239, 1241 (5th Cir. 1979) (“CORCO”); In re Eclair Bakery Ltd., 255 B.R. 121, 141 (Bankr.S.D.N.Y. 2000); Huntington Nat’l Bank v. Industrial Pollution Control, Inc. (In re Industnal Pollution Control, Inc.), 137 B.R. 176, 180 (Bankr.W.D.Pa.1992); In re Suzanne de Lyon, Inc., 125 B.R. 863, 868 (Bankr. S.D.N.Y.1991); In re Garden Manor Assoc., L.P., 99 B.R. 551, 553 (Bankr.S.D.N.Y.1988). The decision of whether to transfer venue is within the court’s discretion based on an individualized case-by-case analysis of convenience and fairness. See, e.g., Manville, 896 F.2d at 1391 (analogizing adjudication under 28 U.S.C. § 1404 and citing Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988)); CORCO, 596 F.2d at 1247; Eclair Bakery Ltd., 255 B.R. at 141; In re Seton Chase Assoc., Inc., 141 B.R. 2, 5 (Bankr.E.D.N.Y.1992); In re Vienna Park Properties, 125 B.R. 84, 87 (S.D.N.Y.1991); Garden Manor, 99 B.R. at 553.

Transferring venue of a bankruptcy case is not to be taken lightly. CORCO, 596 F.2d at 1241 (“the court should exercise its power to transfer cautiously”) (citation omitted); In re Pavilion Place Associates, 88 B.R. 32, 35 (Bankr.S.D.N.Y.1988) (“Transfer is a cumbersome disruption of the Chapter 11 process.”) (citations omitted).

A debtor’s choice of forum is entitled to great weight if venue is proper. In re Ocean Properties of Delaware, Inc., 95 B.R. 304, 305 (Bankr.D.Del.1988); In re Windtech, 73 B.R. 448 (Bankr.D.Conn. 1987). “Where a transfer would merely *343 shift the inconvenience from one party to the other, or where after balancing all the factors, the equities leaned but slightly in favor of the movant, the [debtor’s] choice of forum should not be disturbed.” Garden Manor, 99 B.R. at 555 (citing 1 James Wm. Moore et al., Moore’s Federal Practice ¶ 56.10 (2d ed.1988)); In re Great American Resources, Inc., 85 B.R. 444 (Bankr.N.D.Ohio 1988) (“venue decisions should not merely shift the inconvenience from one party to another”) (citations omitted). The decision to transfer requires an examination of a broad array of factors, and a bankruptcy court’s decision denying or transferring venue will only be reversed if the court’s decision constitutes an abuse of discretion. Manville, 896 F.2d at 1391; CORCO, 596 F.2d at 1247; Vienna Park, 125 B.R. at 87.

Pursuant to 28 U.S.C. § 1412, the Court must grant relief if it is established that a transfer of venue would be proper if it is in (1) the interest of justice or (2) the convenience of the parties. In considering the convenience of the parties, the Court weighs a number of factors:

1. The proximity of creditors of every kind to the Court;

2. The proximity of the debtor to the Court;

3. The proximity of the witnesses necessary to the administration of the estate;

4. The location of the assets;

5. The economic administration of the estate; 10 and

6. The necessity for ancillary administration if liquidation should result. 11

CORCO, 596 F.2d at 1247. The factor given the most weight is the promotion of the economic and efficient administration of the estate. Id.

When considering the “interest of justice,” the court applies a broad and flexible standard. Manville, 896 F.2d at 1391. The court considers whether transfer of venue will promote the efficient administration of the estate, judicial economy, timeliness, and fairness. Id.

This Court is guided by numerous cases examining whether to transfer venue pursuant to 28 U.S.C. § 1412, many within this district. However, the Second Circuit has not addressed the transfer of a bankruptcy case pursuant to 28 U.S.C. § 1412. 12 The seminal circuit court case on the issue of whether to transfer venue of a bankruptcy case under 28 U.S.C. § 1412 and Federal Rule of Bankruptcy Procedure 1014 is CORCO. 13 In CORCO, the Fifth *344 Circuit examined whether to transfer venue to Puerto Rico of an oil refining company debtor and eleven subsidiaries that filed a Chapter XI petition for reorganization in San Antonio, Texas. The Fifth Circuit concluded that the bankruptcy court did not abuse its discretion in retaining the bankruptcy case.

In examining the factors delineated by the bankruptcy court, the Fifth Circuit determined that the proximity of creditors (and stockholders) favored San Antonio; that the location of management and witnesses weighed in favor of San Antonio, but that the Debtor’s assets and original books and records were in Puerto Rico. The court placed little emphasis on the location of the assets 14 and discounted the consideration concerning ancillary administration.

The Fifth Circuit also addressed the “interest of justice” prong of § 1412. In so considering, the court retained venue in the location best suited to solve the financial problems of the debtor and to be the least disruptive to the operations of the debtor. Id. at 1248.

The Fifth Circuit’s decision in CORCO is the only circuit court decision directly on point, and the guidelines set forth in the CORCO decision are cited in virtually every opinion this Court reviewed concerning the transfer of a bankruptcy case in its entirety. There appears to be no dispute that the factors set forth in the CORCO decision are to be considered by this Court.

As stated above, there is no Second Circuit authority directly addressing the transfer of a bankruptcy case in its entirety. 15 However, this Court finds instructive the Second Circuit’s decision in Manville addressing the transfer of an adversary proceeding within a bankruptcy case. See Manville, 896 F.2d 1384; See In re Shorts Auto Parts, 136 B.R. 30, 35 (Bankr.N.D.N.Y.1991) (addressing the Manville decision in considering whether transfer of the bankruptcy case as a whole was appropriate).

The Second Circuit in Manville