Enron agrees to sell its gas pipelines for US$2 billion

HOUSTON – Enron Corp. has agreed to sell its domestic natural gas pipelines for more than US$2 billion after an auction aimed at helping the energy company emerge from one of the most expensive and complicated bankruptcies in history.

The winning bidder on Wednesday was CCE Holdings LLC, a joint venture of Southern Union Co. and GE Commercial Finance Energy Financial Services. In addition to paying about US$2 billion in cash, the venture will assume about US$430 million in CrossCountry Energy LLC’s debt, Enron spokeswoman Jennifer Lowney said.The winning bid will be presented to US Bankruptcy Judge Arthur Gonzales in New York for approval at a hearing next week on Thursday.CrossCountry Energy holds Enron’s whole or part interest in three domestic natural gas pipelines, the most prized remaining assets of the scandal-tarred energy company.The company has about 1,100 employees.Two written bids were submitted.CCE’s bid is US$100 million higher than an offer it made in June.Enron’s interim CEO, Stephen Cooper, called the sale “a tremendous outcome for Enron’s creditors.””The purchase price reflects the quality of these assets and opportunities presented by these high-performing businesses,” Cooper said in a statement.Enron said that the company and the Official Unsecured Creditor’s Committee decided the CCE offer was best.Enron previously had said NuCoastal LLC, a company run by Texas billionaire and Coastal Corp. founder Oscar Wyatt Jr. had offered US$2,2 billion in May.The sale is expected to be finalised in mid-December and will give Southern Union/GE sole ownership of Houston-based CrossCountry.-Nampa-APIn addition to paying about US$2 billion in cash, the venture will assume about US$430 million in CrossCountry Energy LLC’s debt, Enron spokeswoman Jennifer Lowney said.The winning bid will be presented to US Bankruptcy Judge Arthur Gonzales in New York for approval at a hearing next week on Thursday.CrossCountry Energy holds Enron’s whole or part interest in three domestic natural gas pipelines, the most prized remaining assets of the scandal-tarred energy company.The company has about 1,100 employees.Two written bids were submitted.CCE’s bid is US$100 million higher than an offer it made in June.Enron’s interim CEO, Stephen Cooper, called the sale “a tremendous outcome for Enron’s creditors.””The purchase price reflects the quality of these assets and opportunities presented by these high-performing businesses,” Cooper said in a statement.Enron said that the company and the Official Unsecured Creditor’s Committee decided the CCE offer was best.Enron previously had said NuCoastal LLC, a company run by Texas billionaire and Coastal Corp. founder Oscar Wyatt Jr. had offered US$2,2 billion in May.The sale is expected to be finalised in mid-December and will give Southern Union/GE sole ownership of Houston-based CrossCountry.-Nampa-AP