Dabhol out of latest Enron restructuring
Wednesday, 14 May 2003, 19:30 IST
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WASHINGTON: The Dabhol power plant in India is not among the firms that Enron is putting under an umbrella international energy company that it plans to set up. The controversial Indian plant on which Enron spent some $600 million is not among the 19 companies listed to go under "InternationalCo", the temporary name given to the new entity. The company's board of directors decided last week to create a new international energy company made up of the majority of its international energy infrastructure businesses but minus Dabhol. Enron said it was ending its effort to sell interests in those businesses. The Dabhol plant in Maharashtra has been shut for over a year following Enron's dispute with the state's electricity board over power tariff. The new company planned by Enron will have an independent board of directors and be protected from liabilities associated with the Enron bankruptcy. The formation of InternationalCo will require the approvals of various boards and the bankruptcy court, as well as the consent of the Official Unsecured Creditors' Committee. "After an extensive auction process and review, we determined that moving forward with InternationalCo was the best way to maximise value, which ultimately will be distributed to our creditors," said Stephen Cooper, Enron interim CEO. InternationalCo is expected to hold all or a portion of Enron's interests in its international electric and natural gas utilities and pipelines, including Elektro, SK-Enron, Cuiaba, Vengas, Trakya, the Bolivia to Brazil Pipeline and Transredes, Nowa Sarzyna and interests in several other energy infrastructure businesses located primarily in Central and South America and the Caribbean. Enron's board voted last month to move forward with the creation of a new pipeline operating entity, which includes Enron's interests in Transwestern Pipeline Company, Citrus Corp., and Northern Plains Natural Gas Company. Enron also is continuing with the auction process for the sale of certain major assets, including Portland General Electric Company, EcoElectrica, Sithe/Independence Power Partners, and Compagnie Papiers Stadacona, as well as other assets in the Enron estate. "Forming the international company squares with Enron's general desire to retain enough assets under new corporate names, to maximise creditor value," said the Wall Street Journal, adding that so far, the company has raised over $2 billion from asset sales and in settlement of energy-trading assets, giving it a cash position in excess of $5 billion.
Source: IANS
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