|
|
Enron Mail |
-----Original Message----- From: Comnes, Alan Sent: Monday, December 17, 2001 8:58 AM To: Alonso, Tom; Alvarez, Ray; Badeer, Robert; Belden, Tim; Blair, Kit; Calger, Christopher F.; Choi, Paul; Dasovich, Jeff; Driscoll, Michael M.; Fischer, Mark; Foster, Chris H.; Gang, Lisa; Gilbert, Scotty; Guzman, Mark; Hall, Steve C. (Legal); Heizenrader, Tim; Kaufman, Paul; Mainzer, Elliot; Mallory, Chris; Malowney, John; Mara, Susan; Motley, Matt; Perrino, Dave; Platter, Phillip; Rance, Susan; Rawson, Lester; Richter, Jeff; Rosman, Stewart; Savage, Gordon; Scholtes, Diana; Semperger, Cara; Stokley, Chris; Swain, Steve; Swerzbin, Mike; Symes, Kate; Thome, Jennifer; Walton, Steve; Williams III, Bill Subject: FW: NYTimes.com Article: Enron Seeks Quick Auction of Trading Unit Enron Seeks Quick Auction of Trading Unit December 17, 2001 By JONATHAN D. GLATER The Enron Corporation (news/quote) has found at least 14 potential buyers interested in its energy trading business, enough so that it plans to go ahead with an auction for the unit in less than a month without lining up a fallback buyer first. In papers filed with a bankruptcy court in New York late Friday afternoon, lawyers for Enron, which sought Chapter 11 protection earlier this month, asked Judge Arthur J. Gonzalez to approve an auction of a 51 percent stake in a joint venture. That venture would own Enron's wholesale energy business, which includes Enron Online and which trades commodities ranging from natural gas to steel in addition to complex financial instruments. Lawyers involved in the bankruptcy proceedings said the company and its lawyers had decided to proceed with an auction as quickly as possible to prevent further deterioration of the trading operation's value. The decision means that Enron, which is based in Houston, has dropped plans to negotiate a deal with one buyer - J. P. Morgan Chase (news/quote) and UBS Warburg have both been mentioned for the role of "stalking horse" - against which other bidders would compete. "There are 14 interested parties," said Martin J. Bienenstock, whose law firm, Weil Gotshal & Manges, is representing Enron. "Some of them would like to be stalking horses, but we don't really need one." Mr. Bienenstock did not provide any guidance on what an investor might be expected to pay. "We're not selling it for dollars," he said. "We're creating a joint venture. We're putting in the traders, the systems and the intellectual property; the other party is putting in creditworthiness. The issue in the auction is what part of the joint venture will Enron own and what part the other" company will own. The 49 percent-51 percent split may not be the final ownership structure, he added. A hearing will be held on Wednesday on an Enron motion that lays out bidding procedures, and Enron proposed that the auction be conducted on Jan. 10. One lawyer involved in the proceedings said that "more typically, you would go in there with a negotiated deal" that the bankruptcy court could use as a benchmark for evaluating competing bids. But producing a negotiated deal takes time, this lawyer said, and Enron is trying to complete this sale "extremely fast." He added, "Whether that's realistic, I don't know." Bankers and lawyers for Enron have said that if the trading business is to be sold as a going concern, it will have to be sold quickly. "Each day that the wholesale business is not acting at full capacity is another day for a competitor to lure customers" or employees, Enron's lawyers warned in the filing on Friday. It is also important that the trading business find a creditworthy partner to maintain the confidence of clients. Otherwise, buyers of energy or other commodities, fearing that transactions might not be completed because of lack of financial strength, would not do business with the joint venture. For these reasons, an auction was expected, especially after Enron told creditors last week that it planned to create a joint venture with a creditworthy financial institution to take over the trading business. Auctions are used in bankruptcy proceedings to ensure that the bankrupt company receives the maximum amount from sales of its assets. The proceeds, which in this case would probably come in the form of future dividend payments or profits from the sale of Enron's share of the joint venture, would then be used to help pay off creditors, lawyers said. http://www.nytimes.com/2001/12/17/business/17ENRO.html?ex=1009608777&;ei=1&en=b3d1db086c32264d HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact Alyson Racer at alyson@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2001 The New York Times Company
|