Enron auctions gas pipelines

HOUSTON – Bankrupt Enron Corp.’s most prized remaining assets – its domestic natural gas pipelines – was be on the block in a quiet auction yesterday.

Bids for CrossCountry Energy Corp., which holds Enron’s whole or part interest in three domestic natural gas pipelines, will be considered at an auction at the New York offices of Enron’s main bankruptcy lawyers, Weil, Gotshal & Manges, said Enron spokeswoman Jennifer Lowney. When the auction closes, the company will choose a winning bid to present to US Bankruptcy Judge Arthur Gonzalez for approval at a Sept. 9 hearing.So far, Enron has publicly acknowledged two bidders interested in CrossCountry.NuCoastal LLC, a company run by Texas billionaire and Coastal Corp. founder Oscar Wyatt Jr. offered US$2,2 billion (N$14,74) in May.Then in June, a joint venture of Southern Union Co. and GE Commercial Finance Energy Financial Services offered US$2,3 billion.Both offers included US$430 million in assumed debt.The CrossCountry sale is part of Houston-based Enron’s plan to emerge from one of the most expensive and complicated bankruptcies in history.The reorganization plan, approved by Gonzalez in July, also assumes Enron will sell Portland General Electric, its Pacific Northwest utility, to an investment group backed by Texas Pacific Group for US$1,25 billion in cash and US$1,1 billion in assumed debt, as announced last year.If those sales close later this year as expected, all that will be left of the scandal-ridden company that once claimed US$100 billion in revenues and pioneered trading operations beyond energy will be Prisma Energy International Inc., a smattering of pipeline and power assets in 14 countries.The Enron name will disappear.Assuming the sales close, Enron will distribute a total of about US$12 billion to creditors – 92 per cent in cash and eight per cent in Prisma stock.If one or both of the sales fall through, Enron will keep whatever company doesn’t sell and creditors will receive less cash and more stock in the multiple companies.Overall, most of Enron’s more than 20,000 creditors will receive about one-fifth of the approximate US$63 billion they are owed.Shareholders will get nothing.A date for the plan to become effective – meaning Enron can begin distributing cash and stock – has not been set.-Nampa-APWhen the auction closes, the company will choose a winning bid to present to US Bankruptcy Judge Arthur Gonzalez for approval at a Sept. 9 hearing.So far, Enron has publicly acknowledged two bidders interested in CrossCountry.NuCoastal LLC, a company run by Texas billionaire and Coastal Corp. founder Oscar Wyatt Jr. offered US$2,2 billion (N$14,74) in May.Then in June, a joint venture of Southern Union Co. and GE Commercial Finance Energy Financial Services offered US$2,3 billion.Both offers included US$430 million in assumed debt.The CrossCountry sale is part of Houston-based Enron’s plan to emerge from one of the most expensive and complicated bankruptcies in history.The reorganization plan, approved by Gonzalez in July, also assumes Enron will sell Portland General Electric, its Pacific Northwest utility, to an investment group backed by Texas Pacific Group for US$1,25 billion in cash and US$1,1 billion in assumed debt, as announced last year.If those sales close later this year as expected, all that will be left of the scandal-ridden company that once claimed US$100 billion in revenues and pioneered trading operations beyond energy will be Prisma Energy International Inc., a smattering of pipeline and power assets in 14 countries.The Enron name will disappear.Assuming the sales close, Enron will distribute a total of about US$12 billion to creditors – 92 per cent in cash and eight per cent in Prisma stock.If one or both of the sales fall through, Enron will keep whatever company doesn’t sell and creditors will receive less cash and more stock in the multiple companies.Overall, most of Enron’s more than 20,000 creditors will receive about one-fifth of the approximate US$63 billion they are owed.Shareholders will get nothing.A date for the plan to become effective – meaning Enron can begin distributing cash and stock – has not been set.-Nampa-AP