enron mentions - 11 / 30 / 01 enron australia is barred from trading power futures ( updatel )
bloomberg , 11 / 30 / 01
enron partnership put $ 50 million in company that went bankrupt
bloomberg , 11 / 30 / 01
royal bank of scotland may buy enron ' s u . k . unit , paper says
bloomberg , 11 / 30 / 01
nord pool clears all enron trades ; sees no losses for exchange
bloomberg , 11 / 30 / 01
enron ' s withdrawal from europe shakes a market it helped create
bloomberg , 11 / 30 / 01
federal prosecutors want to monitor sec ' s enron probe , wsj says
bloomberg , 11 / 30 / 01
enron ' s exit in europe shakes a market it helped form ( updatel )
bloomberg , 11 / 30 / 01
enron ' s overseas investments , assets remain in doubt , nyt says
bloomberg , 11 / 30 / 01
dynegy is under pressure after failed enron buyout , nyt says
bloomberg , 11 / 30 / 01
dynegy says pipeline option not dependent on enron ( updatel )
bloomberg , 11 / 30 / 01
enron may cost insurers over $ 3 billion , analysts say ( updatel )
bloomberg , 11 / 30 / 01
uk power trade panel in talks about enron ' s obligations
dow jones international news , 11 / 30 / 01
enron can still trade on apx , not denied grid access
dow jones energy service , 11 / 30 / 01
enron fails to deliver gas to german utilities - ruhrgas
dow jones energy service , 11 / 30 / 01
enron energy traders describe a workplace in limbo thu
dow jones energy service , 11 / 30 / 01
enron suspended from spot , futures trading on eex
dow jones international news , 11 / 30 / 01
enron japan unit to decide on projects by year end - kyodo
dow jones international news , 11 / 30 / 01
us senate energy panel plans hearing on enron collapse
dow jones international news , 11 / 30 / 01
point of view : stocks put enron in proper perspective
dow jones news service , 11 / 30 / 01
sec ' s pitt promises swift probe into enron
dow jones news service , 11 / 30 / 01
in the money : enron ' s derivatives could test courts
dow jones news service , 11 / 30 / 01
dynegy clarifies its investment in enron ' s northern natural gas unit
dow jones business news , 11 / 30 / 01
norway : interview - " bitter days " for enron nordic unit , wants buy - out .
reuters english news service , 11 / 30 / 01
usa : ppl to increase credit reserve for enron exposure .
reuters english news service , 11 / 30 / 01
usa : update 1 - dynegy says enron pipeline cannot file bankruptcy .
reuters english news service , 11 / 30 / 01
uk : update 1 - enron says 1 , 875 mw uk teesside station operating .
reuters english news service , 11 / 30 / 01
uk : update 1 - innogy may buy enron uk assets at " right price " .
reuters english news service , 11 / 30 / 01
germany : enron europe delays job cut meeting to 1500 gmt .
reuters english news service , 11 / 30 / 01
fitch : dynegy remains on rating watch negative
business wire , 11 / 30 / 01
enron australia is barred from trading power futures ( updatel )
2001 - 11 - 30 01 : 01 ( new york )
enron australia is barred from trading power futures ( updatel )
( adds reason for decision in first paragraph , background
starting in third paragraph )
sydney , nov . 30 ( bloomberg ) - - enron corp . ' s australian
finance unit was barred from trading in the nation ' s wholesale
electricity futures market because its funding wasn ' t assured , the
securities regulator said in a statement faxed to bloomberg .
the australian securities and investments commission today
removed enron australia finance pty from a register of facility
providers for the market .
enron , the largest energy trader , is expected to file for
chapter 11 protection after the collapse of a planned merger with
dynegy inc . asic said it made its decision because enron ' s credit
rating was downgraded .
` ` enron australia ' s last financial report showed that it is
economically dependent on the credit facilities provided , or
guaranteed by its u . s . parent , ' ' the statement said .
enron australia had previously indicated to asic it had
ceased to enter into new derivative contracts in the market , the
statement said .
the australian wholesale electricity futures market brings
together generators and retailers of electricity .
enron partnership put $ 50 million in company that went bankrupt
2001 - 11 - 30 01 : 02 ( new york )
enron partnership put $ 50 million in company that went bankrupt
houston , nov . 30 ( bloomberg ) - - enron corp . shares climbed 50
percent in 1999 as the energy trader reported profit increases
each quarter , and chief executive kenneth lay predicted ` ` another
excellent year for enron . ' '
lay ' s presentation didn ' t include a fact that might have
been of interest to shareholders . an enron - affiliated partnership ,
joint energy development investments limited partnership , or jedi ,
had invested $ 50 million in a texas company that went bankrupt .
enron has written off the loss .
jedi was among more than 30 partnerships enron used to hedge
risks and move assets and liabilities off its books . losses by
some partnerships led to enron ' s downfall after the company
reported inflating profits by $ 586 million over five years . enron
is on the brink of the largest bankruptcy in history after rival
dynegy inc . abandoned a takeover .
` ` enron was hiding things and tried to deceive , ' ' said rob
plaza , a morningstar inc . analyst who owns no shares . ` ` there is
no way the stock would have reached these levels if they had
disclosed more . ' '
legal and accounting experts said enron should have described
jedi ' s investment in costilla energy inc . , an oil and natural - gas
exploration company , in u . s . securities and exchange commission
filings . that ' s because the man who represented jedi in the
investment , tim detmering , is a managing director of enron and
became a member of costilla ' s board .
related parties
` ` it was a related - party transaction , ' ' said howard schilit ,
president of the center for financial research and analysis , a
group that mines financial statements for accounting red flags .
` ` a footnote should have mentioned that . ' '
enron spokesman eric thode said the company chose not to
identify the costilla investment or report detmering ' s role in sec
filings . he said enron grouped the investment ' s loss with other
results . detmering didn ' t return phone requests for an interview .
jedi gave costilla $ 50 million in return for costilla shares
in late 1998 , according to a lawsuit costilla ' s bankruptcy trustee
filed against enron on sept . 5 in zapata county , texas .
sherry chandler , a lawyer representing the trustee , said
jedi , detmering and other enron executives pledged to invest $ 100
million from the partnership in costilla to help finance
costilla ' s planned $ 410 million purchase of oil and natural - gas
properties owned by pioneer natural resources inc .
an enron affiliate , enron oil & gas co . , operated the pioneer
properties , the suit says . in september 1998 , costilla paid
pioneer $ 25 million toward the purchase , which it forfeited when
enron and jedi didn ' t invest additional money to close the
transaction , the suit says . costilla then faced a cash crunch and
filed for bankruptcy protection .
` financial spiral '
costilla trustees blame enron and jedi for a ` ` financial
spiral that led to collapse , ' ' according to the lawsuit .
louis dreyfus natural gas corp . , based in oklahoma city ,
bought costilla ' s oil and gas properties in june 2000 for about
$ 130 million .
enron reduced shareholders ' equity by $ 1 . 2 billion during the
third quarter because of partnership losses . the company is
responsible for $ 3 . 9 billion in partnership debts and faces a mid -
december deadline for paying an additional $ 690 million in
partnership debts .
royal bank of scotland may buy enron ' s u . k . unit , paper says
2001 - 11 - 30 04 : 40 ( new york )
edinburgh , nov . 30 ( bloomberg ) - - royal bank of scotland
group plc , the u . k . ' s third - largest bank , may bid for enron
corp . ' s wessex water unit if the houston - based energy trader
facing bankruptcy is forced to sell , the scotsman reported , citing
an unidentified company official .
other possible bidders for wessex include barclays bank plc ,
westdeutsche landesbank girozentrale , candover investments plc and
scottish sees no losses for exchange
2001 - 11 - 30 05 : 01 ( new york )
nord pool clears all enron trades ; sees no losses for exchange
lysaker , norway , nov . 30 ( bloomberg ) - - nord pool asa ,
europe ' s first and largest electricity exchange , has closed and
cleared all outstanding trades by enron corp . , the u . s . energy
trader facing bankruptcy .
` ` this has been managed without losses for nord pool , ' ' the
exchange said in a statement on its web site .
nord pool suspended enron from trading and clearing at 1 : 50
p . m . local time yesterday because the company failed to ` ` post the
margins required . ' ' the u . k . power exchange and the automated
power exchange also excluded enron yesterday .
european energy exchange ag , germany ' s largest electricity
exchange , said yesterday that enron was still trading . a spokesman
wasn ' t immediately available for comment today .
enron ' s withdrawal from europe shakes a market it helped create
2001 - 11 - 30 05 : 43 ( new york )
enron ' s withdrawal from europe shakes a market it helped create
berlin , nov . 30 ( bloomberg ) - - enron corp . ' s collapse means
europe ' s energy market , which the company helped create , will
become a riskier place .
with enron facing bankruptcy at home and suspended from the
biggest energy exchanges in europe , utilities are struggling to
fill the gap and complete transactions with the u . s . company .
prices in the u . k . , scandinavia and germany surged and dropped as
traders rushed to buy power and tried to sell it again .
` ` enron was a real ice - breaker in europe , ' ' said ralf
schaefer , a spokesman for rwe ag , the continent ' s fourth - largest
electricity company . ` ` it has been incredibly important for
european trading and for the market in general . ' '
the u . s . trader pounced on europe in 1990 , before most of the
region ' s energy markets opened to competition , building a power
station in northern england . until this week it held a fifth of
europe ' s $ 100 billion - a - year electricity - trading market . customers
include sainsbury ' s plc , a u . k . supermarket chain .
` ` i ' ve been running around all day - - traders are very
busy , ' ' said paul taylor , head of electricity trading at txu corp .
in europe , the largest power trader in the u . k . ` ` we ' ve suddenly
got a lot of positions to sort out . ' '
enron employs 6 , 800 people in europe . job losses in the
region are inevitable , said tony lomas , one of the four
administrators at , the auditing firm
appointed to wind down or sell the houston - based company ' s
european business .
enron owns power stations capable of lighting 4 . 4 million
homes in italy , poland , spain , turkey and the u . k . it supplies
electricity - producing windmills in germany and sweden , and owns a
water utility in the u . k . it brought the first weather derivatives
contract to europe in 1998 .
for the average consumer , enron ' s downfall may be
imperceptible . yet enron ' s trading expertise was the envy of
european utilities such as rwe , electrabel sa and enel spa , which
rushed to hire traders and associated staff . e . on ag , europe ' s no .
2 utility , in march opened a new trading floor in munich .
twice rivals ' size
the u . s . company traded about 300 billion kilowatt hours of
electricity in europe last year . e . on , which said its aim was to
overtake enron as the region ' s largest electricity trader , traded
130 billion kilowatt hours in 2000 .
` ` a lot of players have geared their activities toward enron ,
and may have something to lose if enron falls , ' ' said arnhild
stoevik , an analyst at europower as , an oslo - based energy research
company .
enron ' s suspension from nord pool asa , europe ' s first and
largest power exchange , and from the u . k . power exchange yesterday
led to increased price swings and higher - than - usual volume in the
region . day - ahead prices for off - peak electricity
rose as high as 27 pounds ( $ 38 . 5 ) a megawatt - hour before slumping
to close at 15 pounds .
powernext sa , france ' s fledgling power exchange , said trading
suffered a ` ` cold spell ' ' yesterday . powernext executed its first
trades on monday , and had expected enron to join the exchange in
coming weeks .
most european utilities said their individual exposure to
enron was less than $ 50 million . centrica plc , the u . k . ' s dominant
natural - gas supplier , said it may have to write off $ 43 million .
rwe said it has open positions worth ` ` much less ' ' than 10 million
euros with the u . s . company .
` ` we ' re not going to see a single european electricity
company going down , ' ' said vincent gilles , an analyst at ubs
warburg in london . ` ` but without the liquidity , companies may find
it hard to make money out of trading . ' '
europe ' s banks are also feeling the pinch . abbey national plc
said it ' s owed 115 million pounds ( $ 164 million ) by enron , while
abn amro holding nv , the largest dutch bank , may set aside 110
million euros ( $ 97 . 5 million ) to cover its exposure .
sensing opportunity
rivals see a chance to grab the customers enron may have to
leave behind - - like upm - kymmene oyj , which said it may seek
another company to help manage its risk on electricity prices .
europe ' s no . 2 paper company contracted enron for those services
last december .
` ` the way i see it , there ' s one less competitor and still the
same number of customers , ' ' said brian count , chief executive of
innogy holdings plc , the u . k . ' s largest electricity supplier .
enron supplies power to about 150 , 000 british businesses through
its enron direct unit .
there is also ` ` very serious interest ' ' in enron ' s metals -
trading business in europe , ' s lomas said .
possible buyers include hsbc holdings plc , glencore international
ag and the current management of the company , analysts said .
officials there couldn ' t be reached to comment .
the loss of enron may be felt most in germany , home to rwe
and e . on , where the u . s . company controlled as much as 40 percent
of electricity trading . it had lobbied for fair access for foreign
companies starting out in europe ' s largest energy market .
enron won a landmark case in 1999 on the right to distribute
power over the germany ' s grid . its complaints this year spurred
german authorities to probe four utilities for charging too much
to let rivals transport power across their grids .
german households and businesses ` ` may be less willing to
switch suppliers if they have fears of companies going out of
business , ' ' said ulf boege , head of germany ' s antitrust authority ,
at a press conference in bonn yesterday .
federal prosecutors want to monitor sec ' s enron probe , wsj says
2001 - 11 - 30 07 : 40 ( new york )
washington , nov . 30 ( bloomberg ) - - federal prosecutors in
texas and new york told the securities and exchange commission
they want to monitor the sec investigation into enron corp . ' s
accounting practices as a possible precursor to a criminal case ,
the wall street journal said , citing an unidentified source .
if a criminal investigation began , it would most likely take
place in the houston office , though new york could assert
jurisdiction since the company is traded on the new york stock
exchange , the journal reported .
prosecutors haven ' t started their own investigations out of
concerns a criminal probe would cause potential witnesses ` ` to
clam up , ' ' the unidentified source told the journal .
enron is poised to file the largest bankruptcy reorganization
in history . the company is saddled with more than $ 15 billion in
debt and had less than $ 2 billion in cash as of last week .
( wall street journal 11 / 30 a 8 )
for the wall street journal web site , type { wwsj } .
enron ' s exit in europe shakes a market it helped form ( updatel )
2001 - 11 - 30 08 : 04 ( new york )
enron ' s exit in europe shakes a market it helped form ( updatel )
( adds detail on electricity trading in seventh paragraph . )
berlin , nov . 30 ( bloomberg ) - - enron corp . ' s collapse means
europe ' s energy - trading market , which the company helped create ,
will become a riskier place .
with enron facing bankruptcy and suspended from energy
exchanges in europe , utilities are struggling to fill the gap and
wind up business with the u . s . company . until this week it held a
fifth of europe ' s $ 100 billion - a - year electricity - trading market .
` ` enron was a real ice - breaker in europe , ' ' said ralf
schaefer , a spokesman for rwe ag , the continent ' s fourth - largest
electricity company . ` ` it has been incredibly important for
european trading and for the market in general . ' '
the u . s . trader pounced on europe in 1990 , before most of the
region ' s energy markets opened to competition . prices in the u . k . ,
scandinavia and germany surged and then dropped thursday as
traders , predicting a supply shortage , rushed to buy electricity ,
found they had too much , and tried to sell it again .
` ` i ' ve been running around all day - - traders are very
busy , ' ' said paul taylor , head of electricity trading at txu corp .
in europe , the largest power trader in the u . k . ` ` we ' ve suddenly
got a lot of positions to sort out . ' '
enron employs 6 , 800 people in europe . job losses in the
region are inevitable , said tony lomas , one of the four
administrators at , the auditing firm
appointed to wind down or sell the houston - based company ' s
european business .
envy of rivals
for household consumers , enron ' s downfall may be
imperceptible . enron ' s customers were mostly businesses and other
utilities , which will now turn to enron rivals for supplies .
european utilities have more generation capacity than they trade ,
preventing shortages .
still , enron ' s trading expertise was the envy of european
utilities such as rwe , electrabel sa and enel spa , which rushed to
hire traders and associated staff . e . on ag , europe ' s no . 2
utility , in march opened a new trading floor in munich .
the u . s . company traded about 300 billion kilowatt hours of
electricity in europe last year . e . on , which said its aim was to
overtake enron as the region ' s largest electricity trader , traded
130 billion kilowatt hours in 2000 .
` ` a lot of players have geared their activities toward enron ,
and may have something to lose if enron falls , ' ' said arnhild
stoevik , an analyst at europower as , an oslo - based energy research
company .
` cold spell '
enron ' s suspension from nord pool asa , europe ' s largest power
exchange , and from the u . k . power exchange yesterday led to
increased price swings and higher - than - usual volume . day - ahead
prices for off - peak electricity rose as high as 27 pounds ( $ 38 . 50 )
a megawatt - hour before slumping to close at 15 pounds .
powernext sa , france ' s fledgling power exchange , said trading
suffered a ` ` cold spell ' ' yesterday . powernext executed its first
trades on monday , and had expected enron to join the exchange in
coming weeks .
enron owns power stations capable of lighting 4 . 4 million
homes in italy , poland , spain , turkey and the u . k . it supplies
electricity - producing windmills in germany and sweden , and owns a
water utility in the u . k . it brought the first weather derivatives
contract to europe in 1998 .
most european utilities said their individual exposure to
enron was less than $ 50 million . centrica plc , the u . k . ' s dominant
natural - gas supplier , said it may have to write off $ 43 million .
rwe said it has open positions worth ` ` much less ' ' than 10 million
euros ( $ 8 . 9 million ) with the u . s . company .
sensing opportunity
` ` we ' re not going to see a single european electricity
company going down , ' ' said vincent gilles , an analyst at ubs
warburg in london . ` ` but without the liquidity , companies may find
it hard to make money out of trading . ' '
europe ' s banks are also feeling the pinch . abbey national plc
said it ' s owed 115 million pounds by enron , while abn amro holding
nv , the largest dutch bank , may set aside 110 million euros to
cover its exposure . credit lyonnais sa of france has $ 250 million
in loans to enron , half of which are unsecured .
rivals see a chance to grab the customers enron may leave
behind - - like upm - kymmene oyj , which said it may seek another
company to help manage its risk on electricity prices . europe ' s
no . 2 paper company contracted enron for those services last
december .
` ` the way i see it , there ' s one less competitor and still the
same number of customers , ' ' said brian count , chief executive of
innogy holdings plc , the u . k . ' s largest electricity supplier .
enron supplies power to about 150 , 000 british businesses through
its enron direct unit .
there is also ` ` very serious interest ' ' in enron ' s metals -
trading business in europe , ' s lomas said .
possible buyers include hsbc holdings plc , glencore international
ag and the current management of the company , analysts said .
officials there couldn ' t be reached to comment .
german loss
the loss of enron may be felt most in germany , home to rwe
and e . on , where the u . s . company controlled as much as 40 percent
of electricity trading . it had lobbied for fair access for foreign
companies starting out in europe ' s largest energy market .
enron won a landmark case in 1999 on the right to distribute
power over the germany ' s grid . its complaints this year spurred
german authorities to probe four utilities for charging too much
to let rivals transport power across their grids .
german households and businesses ` ` may be less willing to
switch suppliers if they have fears of companies going out of
business , ' ' said ulf boege , head of germany ' s antitrust authority ,
at a press conference in bonn yesterday .
enron ' s overseas investments , assets remain in doubt , nyt says
2001 - 11 - 30 08 : 11 ( new york )
houston , nov . 30 ( bloomberg ) - - enron corp . ' s customers and
lenders are concerned about what will become of the energy
trader ' s overseas assets , investments and operations , which
provided the company with about 25 percent of its revenue , the new
york times said .
in brazil , the fate of its controlling stake in elektro
eletricidade e servico remains unknown as brazil ' s electricity
regulator backtracked from an original assertion that the power
supplier would be forfeited to the government if enron filed for
bankruptcy , the times said . the regulator , aneel , acknowledged it
might not have legal grounds to seize the elektro stake .
enron is in a dispute over unpaid bills and contract terms
with the indian utility maharashtra , a customer from its $ 2 . 9
billion dabhol power venture . lenders with $ 1 . 4 billion in loans
and loan guarantees outstanding on dabhol threatened to seize the
plant if enron filed for bankruptcy .
enron europe filed in britain for court protection from
creditors and was placed under the control of an administrator ,
 , which said it was close to selling the
company ' s metals - trading unit , the times said . enron is a major
participant in european energy trading .
( nyt 11 - 30 c 6 )
for the web site of the new york times , see { nyti } .
dynegy is under pressure after failed enron buyout , nyt says
2001 - 11 - 30 08 : 38 ( new york )
houston , nov . 30 ( bloomberg ) - - dynegy inc . is having trouble
making a clean break from its buyout offer to energy trader enron
corp . , the new york times reported .
dynegy , whose bond rating is under pressure , may face a
lawsuit from enron and questions from investors about why it
didn ' t scrutinize enron ' s books more closely , the times said .
dynegy ' s decision to back out of the $ 9 billion acquisition leaves
enron on the verge of bankruptcy .
the houston - based rival of enron must now convince investors
and rating agencies that it has less in common with enron than it
said earlier this month , the paper said . with enron out of the
way , dynegy may be able to expand its energy trading business .
however , some worry that enron ' s collapse has revealed previously
undiscovered risks that energy trading companies may face , the
times said .
dynegy ' s efforts to buy a natural gas pipeline that is one of
enron ' s most valuable assets for $ 1 . 5 billion might not pan out
either because enron said it will fight to keep the pipeline out
of dynegy ' s hands , the times reported .
( nyt 11 - 30 c 7 )
dynegy says pipeline option not dependent on enron ( updatel )
2001 - 11 - 30 09 : 00 ( new york )
dynegy says pipeline option not dependent on enron ( updatel )
( adds chairman ' s comments in third and fourth paragraphs . )
houston , nov . 30 ( bloomberg ) - - dynegy inc . said it plans to
take over enron corp . ' s northern natural gas co . pipeline unit
next month , even if enron seeks chapter 11 bankruptcy protection
or challenges dynegy ' s decision to call off their merger .
the nov . 9 merger agreement gave dynegy $ 1 . 5 billion in
preferred stock in northern natural gas , as well as the right to
buy all of the common stock of the business for about $ 23 million .
dynegy backed out of the $ 23 billion merger on wednesday and said
it would exercise its right to take over the 16 , 500 - mile pipeline .
enron has said it is reviewing options for northern natural
gas , one of its most valuable assets . enron may sue to keep dynegy
from claiming ownership of the pipeline , a person familiar with
the situation said yesterday . dynegy chairman chuck watson said
yesterday he would rather take over the pipeline than get back the
$ 1 . 5 billion investment .
enron can buy the pipeline back if it pays dynegy
$ 1 . 5 billion , plus interest , within 180 days of the merger ' s
collapse , watson said . enron has been unable to raise enough cash
to ensure it can pay its debts and is having trouble financing
daily operations .
enron is facing bankruptcy after credit rating agencies
lowered the company to junk status , causing customers to take
business to other energy traders . northern natural gas can ' t take
any action , including filing for bankruptcy , without the consent
of dynegy as a preferred stockholder , dynegy said in a statement .
dynegy ' s right to the pipeline ` ` is not dependent on enron ' s
agreement to our right to terminate the merger , ' ' dynegy chief
financial officer rob doty said in the statement . dynegy said
today it plans to complete the pipeline purchase on dec . 12 .
shares of enron fell 25 cents to 36 cents yesterday . they
have fallen 99 percent since mid - october . dynegy fell $ 2 . 32 , or
6 . 5 percent , to $ 33 . 65 . both companies are based in houston .
enron may cost insurers over $ 3 billion , analysts say ( updatel )
2001 - 11 - 30 09 : 33 ( new york )
enron may cost insurers over $ 3 billion , analysts say ( updatel )
( adds analyst comment on u . s . life insurers ' exposure . )
new york , nov . 30 ( bloomberg ) - - ambac financial group inc . ,
xl capital ltd . and other bond and property - casualty insurers may
absorb losses of more than $ 2 billion overall in the event enron
corp . files for bankruptcy protection , according to morgan stanley
dean witter & co . analyst alice schroeder .
john hancock financial services inc . , principal financial
group , lincoln national corp . and other u . s . life insurers also
are facing another $ 1 billion in investment losses related to
enron , according to colin devine , an analyst at salomon smith
barney inc .
after shouldering claims of as much as $ 70 billion from the
sept . 11 terrorist attacks , insurers are now confronted with
claims from financial and other insurance related to enron , as
well as losses on investments in the energy company ' s securities .
enron is poised to file the largest bankruptcy reorganization in
history after dynegy inc . scuttled plans to acquire the company
and its debt ratings were cut to junk status .
` ` we see at least four exposure areas , ' ' morgan stanley ' s
schroeder , the top - ranked property - casualty analyst according to
institutional investor , wrote in a note to investors . schroeder
didn ' t estimate the tally for any individual firms .
mbia inc . , the biggest bond insurer , and ambac financial
group , the second - biggest bond insurer , said they have no direct
exposure to enron . ambac , however , does have $ 37 million of
exposure to bonds issued by an oregon utility owned by enron -
portland general electric .
estimates
xl capital ltd . , the biggest bermuda insurer , said it has
minimal exposure to enron . xl capital ' s element re division , which
specializes in the type of energy trading developed by enron ,
actually owes enron a small amount of money related to a swap
agreement , said spokesman roger scotton .
john hancock has the biggest exposure to enron debt among
u . s . life insurers at $ 320 million , according to devine . principal
financial , lincoln national and metlife inc . have exposures of
$ 172 million , $ 95 million and $ 62 . 6 million respectively .
` ` we do not expect enron exposure to represent more than 1
percent of any single company ' s equity base with the possible
exception of conseco , ' ' said devine .
uk power trade panel in talks about enron ' s obligations
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones + 44 - ( 0 ) 20 - 7842 - 9345 ; sarah . spikes @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron can still trade on apx , not denied grid access
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones & company , inc . )
amsterdam - ( dow jones ) - the dutch amsterdam power exchange friday said it hasn ' t yet barred financially troubled enron corp . ( ene ) from trading on the amsterdam spot market .
nanke kramer , a spokeswoman for the spot market told dow jones enron still meets all requirements to participate in trading , adding the bourse is " closely monitoring " the situation and will " act " when the company doesn ' t .
enron wednesday ceased most of its trading activity after a buyout by dynegy inc . ( dyn ) failed , and the company ' s credit ratings were downgraded to " junk " status .
since then , it has been ousted from trading on the european energy exchange and the german high - voltage grid has been closed to enron .
a spokesman for the dutch national grid operator , frits bots of tennet nv , said that organization has seen " no reason yet " to refuse enron access to the grid .
the spokesman said of cross - border electricity import capacity purchased by enron that it is " not known yet what will happen to that . "
the tennet spokesman said his organization too is " keeping a close eye on the situation . "
- by a . j . hesselink , dow jones newswires , 31 20 6260770 , arentjan . hesselink @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron fails to deliver gas to german utilities - ruhrgas
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones ( + 44 20 ) 78429366 ; hillary . jackson @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron energy traders describe a workplace in limbo thu
by erwin seba
of dow jones newswires
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones we ' re not doing any more business right now , " an energy trader said . " we ' re attempting to honor all of our existing commitments on the market side now . "
financial products traders are sitting idle , clearing up paperwork and monitoring markets in case the opportunity to deal arises again .
" you can ' t trade those when you have the credit rating we have , " a financial products trader said . " we ' re still working for debtholders . the equity value may be out of the company right now , but i ' m still getting paid , i ' m still doing my job . "
enron ' s credit was downgraded to junk status wednesday , as a planned buyout by dynegy inc . ( dyn ) to rescue enron fell apart .
as the company teetered on the brink of insolvency thursday , traders and other employees said they were still planning a future with enron .
" you see that building over there , " an energy trader said , pointing to a nearly complete 40 - story twin across the street from enron ' s downtown headquarters . " i ' m scheduled to move over there next week , and i ' m still being told to be ready to move . "
unlike top enron executives who continue to portray themselves as in control of the company ' s fate , traders said they believe enron ' s future likely will lie with a bankruptcy court judge or the committee of creditors that judge will authorize .
others were already working out their grief .
" i got drunk last night , " a trader said . " you can quote me . i closed ' em down . "
over the noon hour , as enron employees left work for lunch they passed several reporters and television cameramen . many just held up hands or shook their heads when approached by reporters .
one gas trader from chevrontexaco ' s ( cvx ) houston office , on his lunch break , walked over to a small park across the street from enron ' s headquarters . he came to see why all the tv cameras were there .
" sure , i used to call them the evil empire , " he said . " it ' s been a friendly competition , though . they were always willing to make a market . no one will replace them . "
he looked up at enron ' s headquarters , 40 stories of glass reflecting blue sky and white clouds on a cold , windy day .
" i hate to see them go , " the chevrontexaco trader said . " it ' s like a death in the family . "
- by erwin seba , dow jones newswires ; 713 - 547 - 9214 ; erwin . seba @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron suspended from spot , futures trading on eex
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 49 - 69 - 297 - 25500 ; rachel . graham @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron japan unit to decide on projects by year end - kyodo
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones & company , inc . )
aomori , japan - ( dow jones ) - the japanese arm of troubled u . s . energy giant enron corp . ( ene ) said friday it will decide on the future development of ongoing power plant projects in japan by the year - end , kyod news service reported .
" we are now reviewing the projects and will make a decision by the year - end , " e power corp . said in a statement presented to the aomori prefectural government , kyodo reported .
the prefecture is hosting a project to build a thermal plant powered by liquefied natural gas in the village of rokkasho .
the statement was in response to a request by the northeastern japan prefecture thursday that it continue the project following reports that enron may collapse .
enron also plans to build coal - fueled power plants in ube in yamaguchi prefecture , and matsuyama in ehime prefecture , both in western japan , and omuta in fukuoka prefecture , southwestern japan , according to the kyodo news service .
copyright ? 2000 dow jones & company , inc . all rights reserved .
us senate energy panel plans hearing on enron collapse
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 202 - 862 - 9291 ; campion . walsh @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
point of view : stocks put enron in proper perspective
by gene colter
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones 201 - 938 - 2068 ; gene . colter @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
sec ' s pitt promises swift probe into enron
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones 202 - 862 - 6692
copyright ? 2000 dow jones & company , inc . all rights reserved .
in the money : enron ' s derivatives could test courts
by carol s . remond and phyllis plitch
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones dow jones newswires ; carol . remond @ dowjones . com
( phyllis plitch contributed to this column . )
copyright ? 2000 dow jones & company , inc . all rights reserved .
dynegy clarifies its investment in enron ' s northern natural gas unit
11 / 30 / 2001
dow jones business news
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - - dynegy inc . , which terminated its planned acquisition of enron corp . earlier this week , said enron subsidiary northern natural gas can ' t take certain actions , including seeking bankruptcy - court protection , without the consent of dynegy as a preferred stockholder .
dynegy ( dyn ) and chevrontexaco corp . ( cvx ) own all the preferred stock in northern natural gas and control all the voting rights for the pipeline company . dynegy gained rights to the pipeline as collateral for a $ 1 . 5 billion cash infusion provided by chevrontexaco , which owns about 26 % of dynegy .
dynegy pulled out of its $ 9 billion all - stock merger agreement with enron ( ene ) on wednesday after standard & poor ' s cut the beleaguered energy trading company ' s debt rating to single - b - minus , essentially rendering it to junk status . both companies are based in houston .
enron is widely expected to file for chapter 11 bankruptcy protection .
dynegy acquired $ 1 . 5 billion in preferred stock in northern natural gas in connection with its proposed merger with enron . northern natural ' s 16 , 500 - mile interstate pipeline extends from the permian basin of texas to the upper midwest .
on nov . 9 , dynegy acquired an option to purchase 100 % of northern natural ' s equity for about $ 23 million . the company exercised that option on wednesday when it terminated its merger agreement with enron . upon closing , slated for dec . 12 , dynegy said about $ 950 million of northern natural gas debt will remain in place .
" northern natural gas will be an excellent addition to our asset - backed , customer - focused energy delivery network , " said dynegy executive vice president and chief financial officer rob doty , in a prepared statement . " this network enables us to provide reliable supply , risk management and logistics to our customers , as we have done for the past 16 years . "
mr . doty added that dynegy " has contacted enron to begin a transition of the pipeline ' s management and expects enron ' s full cooperation . "
on thursday , dynegy chairman and chief executive chuck watson said he was confident dynegy ' s attorneys structured the northern natural gas deal so it wouldn ' t be affected if enron filed for bankruptcy . once dynegy takes control of the pipeline , enron will have 180 days to buy it back for $ 1 . 5 billion plus interest , mr . watson said in a press conference thursday .
dynegy said northern natural gas has been a separate unit for more than 20 years and operates as a separate business , with separate federal energy regulatory commission , or ferc , tariffs , offices , management and customers .
copyright ( c ) 2001 dow jones & company , inc .
all rights reserved
copyright ? 2000 dow jones & company , inc . all rights reserved .
norway : interview - " bitter days " for enron nordic unit , wants buy - out .
by erik brynhildsbakken
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
oslo , nov 30 ( reuters ) - the chief power trader at enron nordic energy , a unit of u . s . - based enron , said it was heart - breaking to see his unit being pulled down in the maelstrom of its stricken parent company and hoped to find a buyer for his trading operation .
" we hope that someone will buy the nordic unit , and are working on several concrete alternatives in order to make that happen , " thor lien , head trader at enron nordic energy , told reuters .
" these are bitter days , " he added .
lien said the nordic unit had 60 employees and was likely the largest player in the nordic power market , holding a 20 - 25 percent market share with an annual turnover of about 1 , 000 terawatt hours of electricity .
" we have done very well , but the actual figures are confidential , " he said .
enron nordic energy is part of u . s - based enron and does not belong to the company ' s european arm which went into administration on thursday .
earlier on friday the nordic power bourse nord pool said it had closed all positions held by enron nordic energy in its financial market .
" but we have managed to keep all our obligations , and - paradoxically - we are still in business , " lien said .
" currently it is the market that owes us money , not the other way round . "
lien said the nordic unit seemed cut off from the flow of information as enron ' s headquarter in houston prepared for the biggest bankruptcy protection in history .
" it is total silence , " he said , adding that enron nordic would have to line up a buyer fast if it were to stand any chance of surviving .
" if the parent company goes bankrupt or files for chapter 11 there would be no company within the structure that could survive , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : ppl to increase credit reserve for enron exposure .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
allentown , pa . , nov 30 ( reuters ) - ppl corp . , an electric utility with power plants in the u . s . northeast and montana , on friday said it would increase the reserve for its credit exposure to enron corp . but was standing by its forecast for 2001 earnings of more than $ 4 a share .
allentown , pennsylvania - based ppl said it has a net exposure of less than $ 10 million from trading activities with enron , the energy trading giant that appears on the brink of bankruptcy .
additionally , if enron does not fulfill its contractual obligations , ppl has a " mark to market " exposure that averages about $ 6 million annually under long - term electricity supply contracts that extend through 2006 , the company said . ppl said it has discontinued sales to enron .
on a related matter , ppl said it has a 51 percent interest in western power distribution ( wpd ) in britain , and wpd is a 15 percent equity investor in the 1 , 800 - megawatt teesside power station in northern england . enron participates through its european affiliates as an owner , an operator and a power purchaser of the station .
it cannot be determined at this point what effect , if any , enron ' s circumstances could have on teesside ' s operational and financial performance , ppl said . wpd ' s investment in teesside is some 46 million pounds , or about $ 66 million based on current exchange rates .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - dynegy says enron pipeline cannot file bankruptcy .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 30 ( reuters ) - energy trader dynegy inc . on friday warned enron corp . it cannot try to prevent dynegy ' s plans to buy a natural gas pipeline unit of the troubled rival by filing for bankruptcy .
dynegy , which earlier this week backed out of a deal to bail out enron through a $ 9 billion takeover , said it bought $ 1 . 5 billion of preferred stock in northern natural gas , a 16 , 500 - mile interstate pipeline company .
" as a result of this purchase , northern natural gas cannot take certain actions , including seeking bankruptcy court protection , without the consent of dynegy as a preferred stockholder , " dynegy said in a statement .
dynegy also said despite canceling its proposed purchase of enron , it still has the right to buy all the common stock of northern natural gas and intends to close that transaction on dec 12 . upon closing , about $ 950 million of northern natural gas debt will remain , it said .
enron , which is widely expected to seek bankruptcy protection , contests dynegy ' s claim .
" dynegy ' s right to exercise the option is not dependent on enron ' s agreement to our right to terminate the merger , " dynegy said .
northern natural gas was formerly part of internorth , which merged with houston natural gas in the mid - 1980 s to form enron , and has been a separate unit for more than 20 years , dynegy said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : update 1 - enron says 1 , 875 mw uk teesside station operating .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 30 ( reuters ) - the 1 , 875 megawatt teesside gas - fired power station operated by enron was delivering electricity to the national grid as normal , the company said on friday .
" at present teesside is operating normally , " a spokeswoman for the group told reuters .
enron ' s european trading business was placed in adminstration on thursday , but this did not include the teesside power station , in which enron has a 50 percent stake .
britain ' s national grid said it would call on other power generators to increase production if it looked like output from the power station might be cut . " if there were circumstances where there would not be enough marginal spare capacity we would ask generators to increase output , " a spokesman for the national grid told reuters .
" it is standard practice , " he said .
the troubled u . s . energy group , which boasted revenue of $ 101 billion in 2002 , is on the verge of bankruptcy after surprising off - balance sheet disclosures triggered a share price collapse .
the teesside combined cycle gas - fired power station , which came on stream in 1992 , is 50 percent owned by enron with the other 50 percent split between midlands electricity , northern electric , owned by midamerican energy , the u . s . utility controlled by warren buffett ' s berkshire hathaway and western power distribution .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : update 1 - innogy may buy enron uk assets at " right price " .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 30 ( reuters ) - british utility innogy said on friday it would consider buying enron ' s generation and retail assets in britain if the price were right .
" we would be interested in both enron ' s share of the teesside power station and enron direct ( a retail arm ) at the right price , " a spokesman at innogy told reuters .
enron has a 50 percent share in the 1 , 875 megawatt gas - fired teesside power station in north - east england , an investment which analysts say could be worth about 250 million pounds .
analysts said the teesside plant might also attract interest from state - owned electricite de france ( edf ) and dynegy , enron ' s former suitor which pulled out of a rescue bid on wednesday , propelling the group towards collapse .
edf said it was too soon comment on the plant , one of the largest gas - fired power stations in europe .
" as with every company , we will look closely but it is too early and nothing has been offered yet , " he said .
analysts said teesside , which came on stream in 1992 , could be an attractive buy as it has constant income .
" teesside has a fairly steady revenue stream thanks to its power purchase agreement , but that is likely to run out in about 2008 so the station ' s prospects after then will be less attractive , " an analyst who declined to be named said .
enron direct has about 150 , 000 customers in the small to medium - sized business sector in britain , a market which analysts say shows good revenues and strong margins .
" enron direct is likely to be snapped up , " said david kurtz , an analyst at datamonitor , who thought another potential buyer aside from innogy ' s retail arm npower would be powergen .
enron ' s european trading operations were placed into adminstration on thursday as its u . s . parent tottered on the brink of collapse , but the teesside plant and enron direct were excluded .
" it was the trading operations which were placed into administration because they depended on funds from houston ( enron ' s u . s . headquarters ) . but teesside and enron direct , and several other business have their own revenue streams , " an enron spokesman said .
analysts expect all enron ' s european assets , which include power stations in turkey , italy and poland will be sold .
other european business outside adminstration include enron credit , enron metals , enron wind , and wessex water .
enron credit , the unit which specialised in selling credit insurance to corporates , faces being wound - up with most of the 35 - strong staff leaving the company on friday while britain ' s united utilities has already expressed an interest in acquiring wessex water .
( additional reporting by marguerita choy in paris ) .
copyright ? 2000 dow jones & company , inc . all rights reserved .
germany : enron europe delays job cut meeting to 1500 gmt .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
frankfurt , nov 30 ( reuters ) - crisis - hit enron europe has delayed a meeting at which it is expected to announce hundreds of job losses from 1200 gmt until 1500 gmt on friday , said an enron source .
" we ' re walking except those who have to stay to help the administrator , " he said .
enron europe employs 5 , 400 people , two thousand of whom work in london where the european trading operation is based .
the company was put into administration on thursday after its stricken american parent company cut off funding to the european trading division .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fitch : dynegy remains on rating watch negative
11 / 30 / 2001
business wire
( copyright ( c ) 2001 , business wire )
new york - - ( business wire ) - - nov . 30 , 2001 - - the long - term credit ratings of dynegy inc . ( dyn ) and dynegy holdings inc . ( dynh ) remain on rating watch negative following dyn ' s announcement nov . 28 , 2001 that it had terminated its agreement to merge with enron , pending clarification or resolution of issues relating to the aborted merger .
fitch had placed dyn and dynh on rating watch negative on nov . 9 , 2001 following the announcement that dyn had reached definitive agreement to acquire enron in a stock for stock transaction . the rating action reflected uncertainty over the combined company ' s risk profile . in terminating the agreement , dyn cited enron breaches of representations , warranties , covenants and agreements in the merger agreement , including the material adverse change provision . dyn also exercised its option to acquire the common stock of northern natural gas co . ( nng ) , an enron pipeline subsidiary . as part of the merger agreement , chevrontexaco corp . ( cvx ) , a 27 % stakeholder in dyn , provided a $ 1 . 5 billion cash infusion in return for preferred stock in dyn , who in turn made a $ 1 . 5 billion capital contribution structured as a preferred stock investment in nng with the option to purchase a single purpose entity that owns 100 % of nng ' s common stock .
fitch believes that dyn ' s exercise of its stock option on nng will be subject to legal challenges . of greater concern , additional litigation revolving around dyn ' s aborted merger appears likely , potentially creating unquantifiable financial liabilities .
dyn ratings on negative rating watch are as follows :
dynegy inc .
- - ` bbb ' implied senior unsecured debt .
dynegy holdings inc .
- - outstanding ` bbb + ' notes .
dynegy capital trust i
- - outstanding ` bbb ' trust preferred securities .
contact : fitch ralph pellecchia , 212 / 908 - 0586 or glen grabelsky , 212 / 908 - 0577 ( credit policy ) or hugh welton 1 - 212 - 908 - 0746 , new york
09 : 38 est november 30 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron mentions - 11 / 30 / 01
enron australia is barred from trading power futures ( updatel )
bloomberg , 11 / 30 / 01
enron partnership put $ 50 million in company that went bankrupt
bloomberg , 11 / 30 / 01
royal bank of scotland may buy enron ' s u . k . unit , paper says
bloomberg , 11 / 30 / 01
nord pool clears all enron trades ; sees no losses for exchange
bloomberg , 11 / 30 / 01
enron ' s withdrawal from europe shakes a market it helped create
bloomberg , 11 / 30 / 01
federal prosecutors want to monitor sec ' s enron probe , wsj says
bloomberg , 11 / 30 / 01
enron ' s exit in europe shakes a market it helped form ( updatel )
bloomberg , 11 / 30 / 01
enron ' s overseas investments , assets remain in doubt , nyt says
bloomberg , 11 / 30 / 01
dynegy is under pressure after failed enron buyout , nyt says
bloomberg , 11 / 30 / 01
dynegy says pipeline option not dependent on enron ( updatel )
bloomberg , 11 / 30 / 01
enron may cost insurers over $ 3 billion , analysts say ( updatel )
bloomberg , 11 / 30 / 01
uk power trade panel in talks about enron ' s obligations
dow jones international news , 11 / 30 / 01
enron can still trade on apx , not denied grid access
dow jones energy service , 11 / 30 / 01
enron fails to deliver gas to german utilities - ruhrgas
dow jones energy service , 11 / 30 / 01
enron energy traders describe a workplace in limbo thu
dow jones energy service , 11 / 30 / 01
enron suspended from spot , futures trading on eex
dow jones international news , 11 / 30 / 01
enron japan unit to decide on projects by year end - kyodo
dow jones international news , 11 / 30 / 01
us senate energy panel plans hearing on enron collapse
dow jones international news , 11 / 30 / 01
point of view : stocks put enron in proper perspective
dow jones news service , 11 / 30 / 01
sec ' s pitt promises swift probe into enron
dow jones news service , 11 / 30 / 01
in the money : enron ' s derivatives could test courts
dow jones news service , 11 / 30 / 01
dynegy clarifies its investment in enron ' s northern natural gas unit
dow jones business news , 11 / 30 / 01
norway : interview - " bitter days " for enron nordic unit , wants buy - out .
reuters english news service , 11 / 30 / 01
usa : ppl to increase credit reserve for enron exposure .
reuters english news service , 11 / 30 / 01
usa : update 1 - dynegy says enron pipeline cannot file bankruptcy .
reuters english news service , 11 / 30 / 01
uk : update 1 - enron says 1 , 875 mw uk teesside station operating .
reuters english news service , 11 / 30 / 01
uk : update 1 - innogy may buy enron uk assets at " right price " .
reuters english news service , 11 / 30 / 01
germany : enron europe delays job cut meeting to 1500 gmt .
reuters english news service , 11 / 30 / 01
fitch : dynegy remains on rating watch negative
business wire , 11 / 30 / 01
enron australia is barred from trading power futures ( updatel )
2001 - 11 - 30 01 : 01 ( new york )
enron australia is barred from trading power futures ( updatel )
( adds reason for decision in first paragraph , background
starting in third paragraph )
sydney , nov . 30 ( bloomberg ) - - enron corp . ' s australian
finance unit was barred from trading in the nation ' s wholesale
electricity futures market because its funding wasn ' t assured , the
securities regulator said in a statement faxed to bloomberg .
the australian securities and investments commission today
removed enron australia finance pty from a register of facility
providers for the market .
enron , the largest energy trader , is expected to file for
chapter 11 protection after the collapse of a planned merger with
dynegy inc . asic said it made its decision because enron ' s credit
rating was downgraded .
` ` enron australia ' s last financial report showed that it is
economically dependent on the credit facilities provided , or
guaranteed by its u . s . parent , ' ' the statement said .
enron australia had previously indicated to asic it had
ceased to enter into new derivative contracts in the market , the
statement said .
the australian wholesale electricity futures market brings
together generators and retailers of electricity .
enron partnership put $ 50 million in company that went bankrupt
2001 - 11 - 30 01 : 02 ( new york )
enron partnership put $ 50 million in company that went bankrupt
houston , nov . 30 ( bloomberg ) - - enron corp . shares climbed 50
percent in 1999 as the energy trader reported profit increases
each quarter , and chief executive kenneth lay predicted ` ` another
excellent year for enron . ' '
lay ' s presentation didn ' t include a fact that might have
been of interest to shareholders . an enron - affiliated partnership ,
joint energy development investments limited partnership , or jedi ,
had invested $ 50 million in a texas company that went bankrupt .
enron has written off the loss .
jedi was among more than 30 partnerships enron used to hedge
risks and move assets and liabilities off its books . losses by
some partnerships led to enron ' s downfall after the company
reported inflating profits by $ 586 million over five years . enron
is on the brink of the largest bankruptcy in history after rival
dynegy inc . abandoned a takeover .
` ` enron was hiding things and tried to deceive , ' ' said rob
plaza , a morningstar inc . analyst who owns no shares . ` ` there is
no way the stock would have reached these levels if they had
disclosed more . ' '
legal and accounting experts said enron should have described
jedi ' s investment in costilla energy inc . , an oil and natural - gas
exploration company , in u . s . securities and exchange commission
filings . that ' s because the man who represented jedi in the
investment , tim detmering , is a managing director of enron and
became a member of costilla ' s board .
related parties
` ` it was a related - party transaction , ' ' said howard schilit ,
president of the center for financial research and analysis , a
group that mines financial statements for accounting red flags .
` ` a footnote should have mentioned that . ' '
enron spokesman eric thode said the company chose not to
identify the costilla investment or report detmering ' s role in sec
filings . he said enron grouped the investment ' s loss with other
results . detmering didn ' t return phone requests for an interview .
jedi gave costilla $ 50 million in return for costilla shares
in late 1998 , according to a lawsuit costilla ' s bankruptcy trustee
filed against enron on sept . 5 in zapata county , texas .
sherry chandler , a lawyer representing the trustee , said
jedi , detmering and other enron executives pledged to invest $ 100
million from the partnership in costilla to help finance
costilla ' s planned $ 410 million purchase of oil and natural - gas
properties owned by pioneer natural resources inc .
an enron affiliate , enron oil & gas co . , operated the pioneer
properties , the suit says . in september 1998 , costilla paid
pioneer $ 25 million toward the purchase , which it forfeited when
enron and jedi didn ' t invest additional money to close the
transaction , the suit says . costilla then faced a cash crunch and
filed for bankruptcy protection .
` financial spiral '
costilla trustees blame enron and jedi for a ` ` financial
spiral that led to collapse , ' ' according to the lawsuit .
louis dreyfus natural gas corp . , based in oklahoma city ,
bought costilla ' s oil and gas properties in june 2000 for about
$ 130 million .
enron reduced shareholders ' equity by $ 1 . 2 billion during the
third quarter because of partnership losses . the company is
responsible for $ 3 . 9 billion in partnership debts and faces a mid -
december deadline for paying an additional $ 690 million in
partnership debts .
royal bank of scotland may buy enron ' s u . k . unit , paper says
2001 - 11 - 30 04 : 40 ( new york )
edinburgh , nov . 30 ( bloomberg ) - - royal bank of scotland
group plc , the u . k . ' s third - largest bank , may bid for enron
corp . ' s wessex water unit if the houston - based energy trader
facing bankruptcy is forced to sell , the scotsman reported , citing
an unidentified company official .
other possible bidders for wessex include barclays bank plc ,
westdeutsche landesbank girozentrale , candover investments plc and
scottish sees no losses for exchange
2001 - 11 - 30 05 : 01 ( new york )
nord pool clears all enron trades ; sees no losses for exchange
lysaker , norway , nov . 30 ( bloomberg ) - - nord pool asa ,
europe ' s first and largest electricity exchange , has closed and
cleared all outstanding trades by enron corp . , the u . s . energy
trader facing bankruptcy .
` ` this has been managed without losses for nord pool , ' ' the
exchange said in a statement on its web site .
nord pool suspended enron from trading and clearing at 1 : 50
p . m . local time yesterday because the company failed to ` ` post the
margins required . ' ' the u . k . power exchange and the automated
power exchange also excluded enron yesterday .
european energy exchange ag , germany ' s largest electricity
exchange , said yesterday that enron was still trading . a spokesman
wasn ' t immediately available for comment today .
enron ' s withdrawal from europe shakes a market it helped create
2001 - 11 - 30 05 : 43 ( new york )
enron ' s withdrawal from europe shakes a market it helped create
berlin , nov . 30 ( bloomberg ) - - enron corp . ' s collapse means
europe ' s energy market , which the company helped create , will
become a riskier place .
with enron facing bankruptcy at home and suspended from the
biggest energy exchanges in europe , utilities are struggling to
fill the gap and complete transactions with the u . s . company .
prices in the u . k . , scandinavia and germany surged and dropped as
traders rushed to buy power and tried to sell it again .
` ` enron was a real ice - breaker in europe , ' ' said ralf
schaefer , a spokesman for rwe ag , the continent ' s fourth - largest
electricity company . ` ` it has been incredibly important for
european trading and for the market in general . ' '
the u . s . trader pounced on europe in 1990 , before most of the
region ' s energy markets opened to competition , building a power
station in northern england . until this week it held a fifth of
europe ' s $ 100 billion - a - year electricity - trading market . customers
include sainsbury ' s plc , a u . k . supermarket chain .
` ` i ' ve been running around all day - - traders are very
busy , ' ' said paul taylor , head of electricity trading at txu corp .
in europe , the largest power trader in the u . k . ` ` we ' ve suddenly
got a lot of positions to sort out . ' '
enron employs 6 , 800 people in europe . job losses in the
region are inevitable , said tony lomas , one of the four
administrators at , the auditing firm
appointed to wind down or sell the houston - based company ' s
european business .
enron owns power stations capable of lighting 4 . 4 million
homes in italy , poland , spain , turkey and the u . k . it supplies
electricity - producing windmills in germany and sweden , and owns a
water utility in the u . k . it brought the first weather derivatives
contract to europe in 1998 .
for the average consumer , enron ' s downfall may be
imperceptible . yet enron ' s trading expertise was the envy of
european utilities such as rwe , electrabel sa and enel spa , which
rushed to hire traders and associated staff . e . on ag , europe ' s no .
2 utility , in march opened a new trading floor in munich .
twice rivals ' size
the u . s . company traded about 300 billion kilowatt hours of
electricity in europe last year . e . on , which said its aim was to
overtake enron as the region ' s largest electricity trader , traded
130 billion kilowatt hours in 2000 .
` ` a lot of players have geared their activities toward enron ,
and may have something to lose if enron falls , ' ' said arnhild
stoevik , an analyst at europower as , an oslo - based energy research
company .
enron ' s suspension from nord pool asa , europe ' s first and
largest power exchange , and from the u . k . power exchange yesterday
led to increased price swings and higher - than - usual volume in the
region . day - ahead prices for off - peak electricity
rose as high as 27 pounds ( $ 38 . 5 ) a megawatt - hour before slumping
to close at 15 pounds .
powernext sa , france ' s fledgling power exchange , said trading
suffered a ` ` cold spell ' ' yesterday . powernext executed its first
trades on monday , and had expected enron to join the exchange in
coming weeks .
most european utilities said their individual exposure to
enron was less than $ 50 million . centrica plc , the u . k . ' s dominant
natural - gas supplier , said it may have to write off $ 43 million .
rwe said it has open positions worth ` ` much less ' ' than 10 million
euros with the u . s . company .
` ` we ' re not going to see a single european electricity
company going down , ' ' said vincent gilles , an analyst at ubs
warburg in london . ` ` but without the liquidity , companies may find
it hard to make money out of trading . ' '
europe ' s banks are also feeling the pinch . abbey national plc
said it ' s owed 115 million pounds ( $ 164 million ) by enron , while
abn amro holding nv , the largest dutch bank , may set aside 110
million euros ( $ 97 . 5 million ) to cover its exposure .
sensing opportunity
rivals see a chance to grab the customers enron may have to
leave behind - - like upm - kymmene oyj , which said it may seek
another company to help manage its risk on electricity prices .
europe ' s no . 2 paper company contracted enron for those services
last december .
` ` the way i see it , there ' s one less competitor and still the
same number of customers , ' ' said brian count , chief executive of
innogy holdings plc , the u . k . ' s largest electricity supplier .
enron supplies power to about 150 , 000 british businesses through
its enron direct unit .
there is also ` ` very serious interest ' ' in enron ' s metals -
trading business in europe , ' s lomas said .
possible buyers include hsbc holdings plc , glencore international
ag and the current management of the company , analysts said .
officials there couldn ' t be reached to comment .
the loss of enron may be felt most in germany , home to rwe
and e . on , where the u . s . company controlled as much as 40 percent
of electricity trading . it had lobbied for fair access for foreign
companies starting out in europe ' s largest energy market .
enron won a landmark case in 1999 on the right to distribute
power over the germany ' s grid . its complaints this year spurred
german authorities to probe four utilities for charging too much
to let rivals transport power across their grids .
german households and businesses ` ` may be less willing to
switch suppliers if they have fears of companies going out of
business , ' ' said ulf boege , head of germany ' s antitrust authority ,
at a press conference in bonn yesterday .
federal prosecutors want to monitor sec ' s enron probe , wsj says
2001 - 11 - 30 07 : 40 ( new york )
washington , nov . 30 ( bloomberg ) - - federal prosecutors in
texas and new york told the securities and exchange commission
they want to monitor the sec investigation into enron corp . ' s
accounting practices as a possible precursor to a criminal case ,
the wall street journal said , citing an unidentified source .
if a criminal investigation began , it would most likely take
place in the houston office , though new york could assert
jurisdiction since the company is traded on the new york stock
exchange , the journal reported .
prosecutors haven ' t started their own investigations out of
concerns a criminal probe would cause potential witnesses ` ` to
clam up , ' ' the unidentified source told the journal .
enron is poised to file the largest bankruptcy reorganization
in history . the company is saddled with more than $ 15 billion in
debt and had less than $ 2 billion in cash as of last week .
( wall street journal 11 / 30 a 8 )
for the wall street journal web site , type { wwsj } .
enron ' s exit in europe shakes a market it helped form ( updatel )
2001 - 11 - 30 08 : 04 ( new york )
enron ' s exit in europe shakes a market it helped form ( updatel )
( adds detail on electricity trading in seventh paragraph . )
berlin , nov . 30 ( bloomberg ) - - enron corp . ' s collapse means
europe ' s energy - trading market , which the company helped create ,
will become a riskier place .
with enron facing bankruptcy and suspended from energy
exchanges in europe , utilities are struggling to fill the gap and
wind up business with the u . s . company . until this week it held a
fifth of europe ' s $ 100 billion - a - year electricity - trading market .
` ` enron was a real ice - breaker in europe , ' ' said ralf
schaefer , a spokesman for rwe ag , the continent ' s fourth - largest
electricity company . ` ` it has been incredibly important for
european trading and for the market in general . ' '
the u . s . trader pounced on europe in 1990 , before most of the
region ' s energy markets opened to competition . prices in the u . k . ,
scandinavia and germany surged and then dropped thursday as
traders , predicting a supply shortage , rushed to buy electricity ,
found they had too much , and tried to sell it again .
` ` i ' ve been running around all day - - traders are very
busy , ' ' said paul taylor , head of electricity trading at txu corp .
in europe , the largest power trader in the u . k . ` ` we ' ve suddenly
got a lot of positions to sort out . ' '
enron employs 6 , 800 people in europe . job losses in the
region are inevitable , said tony lomas , one of the four
administrators at , the auditing firm
appointed to wind down or sell the houston - based company ' s
european business .
envy of rivals
for household consumers , enron ' s downfall may be
imperceptible . enron ' s customers were mostly businesses and other
utilities , which will now turn to enron rivals for supplies .
european utilities have more generation capacity than they trade ,
preventing shortages .
still , enron ' s trading expertise was the envy of european
utilities such as rwe , electrabel sa and enel spa , which rushed to
hire traders and associated staff . e . on ag , europe ' s no . 2
utility , in march opened a new trading floor in munich .
the u . s . company traded about 300 billion kilowatt hours of
electricity in europe last year . e . on , which said its aim was to
overtake enron as the region ' s largest electricity trader , traded
130 billion kilowatt hours in 2000 .
` ` a lot of players have geared their activities toward enron ,
and may have something to lose if enron falls , ' ' said arnhild
stoevik , an analyst at europower as , an oslo - based energy research
company .
` cold spell '
enron ' s suspension from nord pool asa , europe ' s largest power
exchange , and from the u . k . power exchange yesterday led to
increased price swings and higher - than - usual volume . day - ahead
prices for off - peak electricity rose as high as 27 pounds ( $ 38 . 50 )
a megawatt - hour before slumping to close at 15 pounds .
powernext sa , france ' s fledgling power exchange , said trading
suffered a ` ` cold spell ' ' yesterday . powernext executed its first
trades on monday , and had expected enron to join the exchange in
coming weeks .
enron owns power stations capable of lighting 4 . 4 million
homes in italy , poland , spain , turkey and the u . k . it supplies
electricity - producing windmills in germany and sweden , and owns a
water utility in the u . k . it brought the first weather derivatives
contract to europe in 1998 .
most european utilities said their individual exposure to
enron was less than $ 50 million . centrica plc , the u . k . ' s dominant
natural - gas supplier , said it may have to write off $ 43 million .
rwe said it has open positions worth ` ` much less ' ' than 10 million
euros ( $ 8 . 9 million ) with the u . s . company .
sensing opportunity
` ` we ' re not going to see a single european electricity
company going down , ' ' said vincent gilles , an analyst at ubs
warburg in london . ` ` but without the liquidity , companies may find
it hard to make money out of trading . ' '
europe ' s banks are also feeling the pinch . abbey national plc
said it ' s owed 115 million pounds by enron , while abn amro holding
nv , the largest dutch bank , may set aside 110 million euros to
cover its exposure . credit lyonnais sa of france has $ 250 million
in loans to enron , half of which are unsecured .
rivals see a chance to grab the customers enron may leave
behind - - like upm - kymmene oyj , which said it may seek another
company to help manage its risk on electricity prices . europe ' s
no . 2 paper company contracted enron for those services last
december .
` ` the way i see it , there ' s one less competitor and still the
same number of customers , ' ' said brian count , chief executive of
innogy holdings plc , the u . k . ' s largest electricity supplier .
enron supplies power to about 150 , 000 british businesses through
its enron direct unit .
there is also ` ` very serious interest ' ' in enron ' s metals -
trading business in europe , ' s lomas said .
possible buyers include hsbc holdings plc , glencore international
ag and the current management of the company , analysts said .
officials there couldn ' t be reached to comment .
german loss
the loss of enron may be felt most in germany , home to rwe
and e . on , where the u . s . company controlled as much as 40 percent
of electricity trading . it had lobbied for fair access for foreign
companies starting out in europe ' s largest energy market .
enron won a landmark case in 1999 on the right to distribute
power over the germany ' s grid . its complaints this year spurred
german authorities to probe four utilities for charging too much
to let rivals transport power across their grids .
german households and businesses ` ` may be less willing to
switch suppliers if they have fears of companies going out of
business , ' ' said ulf boege , head of germany ' s antitrust authority ,
at a press conference in bonn yesterday .
enron ' s overseas investments , assets remain in doubt , nyt says
2001 - 11 - 30 08 : 11 ( new york )
houston , nov . 30 ( bloomberg ) - - enron corp . ' s customers and
lenders are concerned about what will become of the energy
trader ' s overseas assets , investments and operations , which
provided the company with about 25 percent of its revenue , the new
york times said .
in brazil , the fate of its controlling stake in elektro
eletricidade e servico remains unknown as brazil ' s electricity
regulator backtracked from an original assertion that the power
supplier would be forfeited to the government if enron filed for
bankruptcy , the times said . the regulator , aneel , acknowledged it
might not have legal grounds to seize the elektro stake .
enron is in a dispute over unpaid bills and contract terms
with the indian utility maharashtra , a customer from its $ 2 . 9
billion dabhol power venture . lenders with $ 1 . 4 billion in loans
and loan guarantees outstanding on dabhol threatened to seize the
plant if enron filed for bankruptcy .
enron europe filed in britain for court protection from
creditors and was placed under the control of an administrator ,
 , which said it was close to selling the
company ' s metals - trading unit , the times said . enron is a major
participant in european energy trading .
( nyt 11 - 30 c 6 )
for the web site of the new york times , see { nyti } .
dynegy is under pressure after failed enron buyout , nyt says
2001 - 11 - 30 08 : 38 ( new york )
houston , nov . 30 ( bloomberg ) - - dynegy inc . is having trouble
making a clean break from its buyout offer to energy trader enron
corp . , the new york times reported .
dynegy , whose bond rating is under pressure , may face a
lawsuit from enron and questions from investors about why it
didn ' t scrutinize enron ' s books more closely , the times said .
dynegy ' s decision to back out of the $ 9 billion acquisition leaves
enron on the verge of bankruptcy .
the houston - based rival of enron must now convince investors
and rating agencies that it has less in common with enron than it
said earlier this month , the paper said . with enron out of the
way , dynegy may be able to expand its energy trading business .
however , some worry that enron ' s collapse has revealed previously
undiscovered risks that energy trading companies may face , the
times said .
dynegy ' s efforts to buy a natural gas pipeline that is one of
enron ' s most valuable assets for $ 1 . 5 billion might not pan out
either because enron said it will fight to keep the pipeline out
of dynegy ' s hands , the times reported .
( nyt 11 - 30 c 7 )
dynegy says pipeline option not dependent on enron ( updatel )
2001 - 11 - 30 09 : 00 ( new york )
dynegy says pipeline option not dependent on enron ( updatel )
( adds chairman ' s comments in third and fourth paragraphs . )
houston , nov . 30 ( bloomberg ) - - dynegy inc . said it plans to
take over enron corp . ' s northern natural gas co . pipeline unit
next month , even if enron seeks chapter 11 bankruptcy protection
or challenges dynegy ' s decision to call off their merger .
the nov . 9 merger agreement gave dynegy $ 1 . 5 billion in
preferred stock in northern natural gas , as well as the right to
buy all of the common stock of the business for about $ 23 million .
dynegy backed out of the $ 23 billion merger on wednesday and said
it would exercise its right to take over the 16 , 500 - mile pipeline .
enron has said it is reviewing options for northern natural
gas , one of its most valuable assets . enron may sue to keep dynegy
from claiming ownership of the pipeline , a person familiar with
the situation said yesterday . dynegy chairman chuck watson said
yesterday he would rather take over the pipeline than get back the
$ 1 . 5 billion investment .
enron can buy the pipeline back if it pays dynegy
$ 1 . 5 billion , plus interest , within 180 days of the merger ' s
collapse , watson said . enron has been unable to raise enough cash
to ensure it can pay its debts and is having trouble financing
daily operations .
enron is facing bankruptcy after credit rating agencies
lowered the company to junk status , causing customers to take
business to other energy traders . northern natural gas can ' t take
any action , including filing for bankruptcy , without the consent
of dynegy as a preferred stockholder , dynegy said in a statement .
dynegy ' s right to the pipeline ` ` is not dependent on enron ' s
agreement to our right to terminate the merger , ' ' dynegy chief
financial officer rob doty said in the statement . dynegy said
today it plans to complete the pipeline purchase on dec . 12 .
shares of enron fell 25 cents to 36 cents yesterday . they
have fallen 99 percent since mid - october . dynegy fell $ 2 . 32 , or
6 . 5 percent , to $ 33 . 65 . both companies are based in houston .
enron may cost insurers over $ 3 billion , analysts say ( updatel )
2001 - 11 - 30 09 : 33 ( new york )
enron may cost insurers over $ 3 billion , analysts say ( updatel )
( adds analyst comment on u . s . life insurers ' exposure . )
new york , nov . 30 ( bloomberg ) - - ambac financial group inc . ,
xl capital ltd . and other bond and property - casualty insurers may
absorb losses of more than $ 2 billion overall in the event enron
corp . files for bankruptcy protection , according to morgan stanley
dean witter & co . analyst alice schroeder .
john hancock financial services inc . , principal financial
group , lincoln national corp . and other u . s . life insurers also
are facing another $ 1 billion in investment losses related to
enron , according to colin devine , an analyst at salomon smith
barney inc .
after shouldering claims of as much as $ 70 billion from the
sept . 11 terrorist attacks , insurers are now confronted with
claims from financial and other insurance related to enron , as
well as losses on investments in the energy company ' s securities .
enron is poised to file the largest bankruptcy reorganization in
history after dynegy inc . scuttled plans to acquire the company
and its debt ratings were cut to junk status .
` ` we see at least four exposure areas , ' ' morgan stanley ' s
schroeder , the top - ranked property - casualty analyst according to
institutional investor , wrote in a note to investors . schroeder
didn ' t estimate the tally for any individual firms .
mbia inc . , the biggest bond insurer , and ambac financial
group , the second - biggest bond insurer , said they have no direct
exposure to enron . ambac , however , does have $ 37 million of
exposure to bonds issued by an oregon utility owned by enron -
portland general electric .
estimates
xl capital ltd . , the biggest bermuda insurer , said it has
minimal exposure to enron . xl capital ' s element re division , which
specializes in the type of energy trading developed by enron ,
actually owes enron a small amount of money related to a swap
agreement , said spokesman roger scotton .
john hancock has the biggest exposure to enron debt among
u . s . life insurers at $ 320 million , according to devine . principal
financial , lincoln national and metlife inc . have exposures of
$ 172 million , $ 95 million and $ 62 . 6 million respectively .
` ` we do not expect enron exposure to represent more than 1
percent of any single company ' s equity base with the possible
exception of conseco , ' ' said devine .
uk power trade panel in talks about enron ' s obligations
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones + 44 - ( 0 ) 20 - 7842 - 9345 ; sarah . spikes @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron can still trade on apx , not denied grid access
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones & company , inc . )
amsterdam - ( dow jones ) - the dutch amsterdam power exchange friday said it hasn ' t yet barred financially troubled enron corp . ( ene ) from trading on the amsterdam spot market .
nanke kramer , a spokeswoman for the spot market told dow jones enron still meets all requirements to participate in trading , adding the bourse is " closely monitoring " the situation and will " act " when the company doesn ' t .
enron wednesday ceased most of its trading activity after a buyout by dynegy inc . ( dyn ) failed , and the company ' s credit ratings were downgraded to " junk " status .
since then , it has been ousted from trading on the european energy exchange and the german high - voltage grid has been closed to enron .
a spokesman for the dutch national grid operator , frits bots of tennet nv , said that organization has seen " no reason yet " to refuse enron access to the grid .
the spokesman said of cross - border electricity import capacity purchased by enron that it is " not known yet what will happen to that . "
the tennet spokesman said his organization too is " keeping a close eye on the situation . "
- by a . j . hesselink , dow jones newswires , 31 20 6260770 , arentjan . hesselink @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron fails to deliver gas to german utilities - ruhrgas
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones ( + 44 20 ) 78429366 ; hillary . jackson @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron energy traders describe a workplace in limbo thu
by erwin seba
of dow jones newswires
11 / 30 / 2001
dow jones energy service
( copyright ( c ) 2001 , dow jones we ' re not doing any more business right now , " an energy trader said . " we ' re attempting to honor all of our existing commitments on the market side now . "
financial products traders are sitting idle , clearing up paperwork and monitoring markets in case the opportunity to deal arises again .
" you can ' t trade those when you have the credit rating we have , " a financial products trader said . " we ' re still working for debtholders . the equity value may be out of the company right now , but i ' m still getting paid , i ' m still doing my job . "
enron ' s credit was downgraded to junk status wednesday , as a planned buyout by dynegy inc . ( dyn ) to rescue enron fell apart .
as the company teetered on the brink of insolvency thursday , traders and other employees said they were still planning a future with enron .
" you see that building over there , " an energy trader said , pointing to a nearly complete 40 - story twin across the street from enron ' s downtown headquarters . " i ' m scheduled to move over there next week , and i ' m still being told to be ready to move . "
unlike top enron executives who continue to portray themselves as in control of the company ' s fate , traders said they believe enron ' s future likely will lie with a bankruptcy court judge or the committee of creditors that judge will authorize .
others were already working out their grief .
" i got drunk last night , " a trader said . " you can quote me . i closed ' em down . "
over the noon hour , as enron employees left work for lunch they passed several reporters and television cameramen . many just held up hands or shook their heads when approached by reporters .
one gas trader from chevrontexaco ' s ( cvx ) houston office , on his lunch break , walked over to a small park across the street from enron ' s headquarters . he came to see why all the tv cameras were there .
" sure , i used to call them the evil empire , " he said . " it ' s been a friendly competition , though . they were always willing to make a market . no one will replace them . "
he looked up at enron ' s headquarters , 40 stories of glass reflecting blue sky and white clouds on a cold , windy day .
" i hate to see them go , " the chevrontexaco trader said . " it ' s like a death in the family . "
- by erwin seba , dow jones newswires ; 713 - 547 - 9214 ; erwin . seba @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron suspended from spot , futures trading on eex
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 49 - 69 - 297 - 25500 ; rachel . graham @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron japan unit to decide on projects by year end - kyodo
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones & company , inc . )
aomori , japan - ( dow jones ) - the japanese arm of troubled u . s . energy giant enron corp . ( ene ) said friday it will decide on the future development of ongoing power plant projects in japan by the year - end , kyod news service reported .
" we are now reviewing the projects and will make a decision by the year - end , " e power corp . said in a statement presented to the aomori prefectural government , kyodo reported .
the prefecture is hosting a project to build a thermal plant powered by liquefied natural gas in the village of rokkasho .
the statement was in response to a request by the northeastern japan prefecture thursday that it continue the project following reports that enron may collapse .
enron also plans to build coal - fueled power plants in ube in yamaguchi prefecture , and matsuyama in ehime prefecture , both in western japan , and omuta in fukuoka prefecture , southwestern japan , according to the kyodo news service .
copyright ? 2000 dow jones & company , inc . all rights reserved .
us senate energy panel plans hearing on enron collapse
11 / 30 / 2001
dow jones international news
( copyright ( c ) 2001 , dow jones 202 - 862 - 9291 ; campion . walsh @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
point of view : stocks put enron in proper perspective
by gene colter
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones 201 - 938 - 2068 ; gene . colter @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
sec ' s pitt promises swift probe into enron
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones 202 - 862 - 6692
copyright ? 2000 dow jones & company , inc . all rights reserved .
in the money : enron ' s derivatives could test courts
by carol s . remond and phyllis plitch
11 / 30 / 2001
dow jones news service
( copyright ( c ) 2001 , dow jones dow jones newswires ; carol . remond @ dowjones . com
( phyllis plitch contributed to this column . )
copyright ? 2000 dow jones & company , inc . all rights reserved .
dynegy clarifies its investment in enron ' s northern natural gas unit
11 / 30 / 2001
dow jones business news
( copyright ( c ) 2001 , dow jones & company , inc . )
houston - - dynegy inc . , which terminated its planned acquisition of enron corp . earlier this week , said enron subsidiary northern natural gas can ' t take certain actions , including seeking bankruptcy - court protection , without the consent of dynegy as a preferred stockholder .
dynegy ( dyn ) and chevrontexaco corp . ( cvx ) own all the preferred stock in northern natural gas and control all the voting rights for the pipeline company . dynegy gained rights to the pipeline as collateral for a $ 1 . 5 billion cash infusion provided by chevrontexaco , which owns about 26 % of dynegy .
dynegy pulled out of its $ 9 billion all - stock merger agreement with enron ( ene ) on wednesday after standard & poor ' s cut the beleaguered energy trading company ' s debt rating to single - b - minus , essentially rendering it to junk status . both companies are based in houston .
enron is widely expected to file for chapter 11 bankruptcy protection .
dynegy acquired $ 1 . 5 billion in preferred stock in northern natural gas in connection with its proposed merger with enron . northern natural ' s 16 , 500 - mile interstate pipeline extends from the permian basin of texas to the upper midwest .
on nov . 9 , dynegy acquired an option to purchase 100 % of northern natural ' s equity for about $ 23 million . the company exercised that option on wednesday when it terminated its merger agreement with enron . upon closing , slated for dec . 12 , dynegy said about $ 950 million of northern natural gas debt will remain in place .
" northern natural gas will be an excellent addition to our asset - backed , customer - focused energy delivery network , " said dynegy executive vice president and chief financial officer rob doty , in a prepared statement . " this network enables us to provide reliable supply , risk management and logistics to our customers , as we have done for the past 16 years . "
mr . doty added that dynegy " has contacted enron to begin a transition of the pipeline ' s management and expects enron ' s full cooperation . "
on thursday , dynegy chairman and chief executive chuck watson said he was confident dynegy ' s attorneys structured the northern natural gas deal so it wouldn ' t be affected if enron filed for bankruptcy . once dynegy takes control of the pipeline , enron will have 180 days to buy it back for $ 1 . 5 billion plus interest , mr . watson said in a press conference thursday .
dynegy said northern natural gas has been a separate unit for more than 20 years and operates as a separate business , with separate federal energy regulatory commission , or ferc , tariffs , offices , management and customers .
copyright ( c ) 2001 dow jones & company , inc .
all rights reserved
copyright ? 2000 dow jones & company , inc . all rights reserved .
norway : interview - " bitter days " for enron nordic unit , wants buy - out .
by erik brynhildsbakken
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
oslo , nov 30 ( reuters ) - the chief power trader at enron nordic energy , a unit of u . s . - based enron , said it was heart - breaking to see his unit being pulled down in the maelstrom of its stricken parent company and hoped to find a buyer for his trading operation .
" we hope that someone will buy the nordic unit , and are working on several concrete alternatives in order to make that happen , " thor lien , head trader at enron nordic energy , told reuters .
" these are bitter days , " he added .
lien said the nordic unit had 60 employees and was likely the largest player in the nordic power market , holding a 20 - 25 percent market share with an annual turnover of about 1 , 000 terawatt hours of electricity .
" we have done very well , but the actual figures are confidential , " he said .
enron nordic energy is part of u . s - based enron and does not belong to the company ' s european arm which went into administration on thursday .
earlier on friday the nordic power bourse nord pool said it had closed all positions held by enron nordic energy in its financial market .
" but we have managed to keep all our obligations , and - paradoxically - we are still in business , " lien said .
" currently it is the market that owes us money , not the other way round . "
lien said the nordic unit seemed cut off from the flow of information as enron ' s headquarter in houston prepared for the biggest bankruptcy protection in history .
" it is total silence , " he said , adding that enron nordic would have to line up a buyer fast if it were to stand any chance of surviving .
" if the parent company goes bankrupt or files for chapter 11 there would be no company within the structure that could survive , " he said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : ppl to increase credit reserve for enron exposure .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
allentown , pa . , nov 30 ( reuters ) - ppl corp . , an electric utility with power plants in the u . s . northeast and montana , on friday said it would increase the reserve for its credit exposure to enron corp . but was standing by its forecast for 2001 earnings of more than $ 4 a share .
allentown , pennsylvania - based ppl said it has a net exposure of less than $ 10 million from trading activities with enron , the energy trading giant that appears on the brink of bankruptcy .
additionally , if enron does not fulfill its contractual obligations , ppl has a " mark to market " exposure that averages about $ 6 million annually under long - term electricity supply contracts that extend through 2006 , the company said . ppl said it has discontinued sales to enron .
on a related matter , ppl said it has a 51 percent interest in western power distribution ( wpd ) in britain , and wpd is a 15 percent equity investor in the 1 , 800 - megawatt teesside power station in northern england . enron participates through its european affiliates as an owner , an operator and a power purchaser of the station .
it cannot be determined at this point what effect , if any , enron ' s circumstances could have on teesside ' s operational and financial performance , ppl said . wpd ' s investment in teesside is some 46 million pounds , or about $ 66 million based on current exchange rates .
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : update 1 - dynegy says enron pipeline cannot file bankruptcy .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
houston , nov 30 ( reuters ) - energy trader dynegy inc . on friday warned enron corp . it cannot try to prevent dynegy ' s plans to buy a natural gas pipeline unit of the troubled rival by filing for bankruptcy .
dynegy , which earlier this week backed out of a deal to bail out enron through a $ 9 billion takeover , said it bought $ 1 . 5 billion of preferred stock in northern natural gas , a 16 , 500 - mile interstate pipeline company .
" as a result of this purchase , northern natural gas cannot take certain actions , including seeking bankruptcy court protection , without the consent of dynegy as a preferred stockholder , " dynegy said in a statement .
dynegy also said despite canceling its proposed purchase of enron , it still has the right to buy all the common stock of northern natural gas and intends to close that transaction on dec 12 . upon closing , about $ 950 million of northern natural gas debt will remain , it said .
enron , which is widely expected to seek bankruptcy protection , contests dynegy ' s claim .
" dynegy ' s right to exercise the option is not dependent on enron ' s agreement to our right to terminate the merger , " dynegy said .
northern natural gas was formerly part of internorth , which merged with houston natural gas in the mid - 1980 s to form enron , and has been a separate unit for more than 20 years , dynegy said .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : update 1 - enron says 1 , 875 mw uk teesside station operating .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 30 ( reuters ) - the 1 , 875 megawatt teesside gas - fired power station operated by enron was delivering electricity to the national grid as normal , the company said on friday .
" at present teesside is operating normally , " a spokeswoman for the group told reuters .
enron ' s european trading business was placed in adminstration on thursday , but this did not include the teesside power station , in which enron has a 50 percent stake .
britain ' s national grid said it would call on other power generators to increase production if it looked like output from the power station might be cut . " if there were circumstances where there would not be enough marginal spare capacity we would ask generators to increase output , " a spokesman for the national grid told reuters .
" it is standard practice , " he said .
the troubled u . s . energy group , which boasted revenue of $ 101 billion in 2002 , is on the verge of bankruptcy after surprising off - balance sheet disclosures triggered a share price collapse .
the teesside combined cycle gas - fired power station , which came on stream in 1992 , is 50 percent owned by enron with the other 50 percent split between midlands electricity , northern electric , owned by midamerican energy , the u . s . utility controlled by warren buffett ' s berkshire hathaway and western power distribution .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : update 1 - innogy may buy enron uk assets at " right price " .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 30 ( reuters ) - british utility innogy said on friday it would consider buying enron ' s generation and retail assets in britain if the price were right .
" we would be interested in both enron ' s share of the teesside power station and enron direct ( a retail arm ) at the right price , " a spokesman at innogy told reuters .
enron has a 50 percent share in the 1 , 875 megawatt gas - fired teesside power station in north - east england , an investment which analysts say could be worth about 250 million pounds .
analysts said the teesside plant might also attract interest from state - owned electricite de france ( edf ) and dynegy , enron ' s former suitor which pulled out of a rescue bid on wednesday , propelling the group towards collapse .
edf said it was too soon comment on the plant , one of the largest gas - fired power stations in europe .
" as with every company , we will look closely but it is too early and nothing has been offered yet , " he said .
analysts said teesside , which came on stream in 1992 , could be an attractive buy as it has constant income .
" teesside has a fairly steady revenue stream thanks to its power purchase agreement , but that is likely to run out in about 2008 so the station ' s prospects after then will be less attractive , " an analyst who declined to be named said .
enron direct has about 150 , 000 customers in the small to medium - sized business sector in britain , a market which analysts say shows good revenues and strong margins .
" enron direct is likely to be snapped up , " said david kurtz , an analyst at datamonitor , who thought another potential buyer aside from innogy ' s retail arm npower would be powergen .
enron ' s european trading operations were placed into adminstration on thursday as its u . s . parent tottered on the brink of collapse , but the teesside plant and enron direct were excluded .
" it was the trading operations which were placed into administration because they depended on funds from houston ( enron ' s u . s . headquarters ) . but teesside and enron direct , and several other business have their own revenue streams , " an enron spokesman said .
analysts expect all enron ' s european assets , which include power stations in turkey , italy and poland will be sold .
other european business outside adminstration include enron credit , enron metals , enron wind , and wessex water .
enron credit , the unit which specialised in selling credit insurance to corporates , faces being wound - up with most of the 35 - strong staff leaving the company on friday while britain ' s united utilities has already expressed an interest in acquiring wessex water .
( additional reporting by marguerita choy in paris ) .
copyright ? 2000 dow jones & company , inc . all rights reserved .
germany : enron europe delays job cut meeting to 1500 gmt .
11 / 30 / 2001
reuters english news service
( c ) reuters limited 2001 .
frankfurt , nov 30 ( reuters ) - crisis - hit enron europe has delayed a meeting at which it is expected to announce hundreds of job losses from 1200 gmt until 1500 gmt on friday , said an enron source .
" we ' re walking except those who have to stay to help the administrator , " he said .
enron europe employs 5 , 400 people , two thousand of whom work in london where the european trading operation is based .
the company was put into administration on thursday after its stricken american parent company cut off funding to the european trading division .
copyright ? 2000 dow jones & company , inc . all rights reserved .
fitch : dynegy remains on rating watch negative
11 / 30 / 2001
business wire
( copyright ( c ) 2001 , business wire )
new york - - ( business wire ) - - nov . 30 , 2001 - - the long - term credit ratings of dynegy inc . ( dyn ) and dynegy holdings inc . ( dynh ) remain on rating watch negative following dyn ' s announcement nov . 28 , 2001 that it had terminated its agreement to merge with enron , pending clarification or resolution of issues relating to the aborted merger .
fitch had placed dyn and dynh on rating watch negative on nov . 9 , 2001 following the announcement that dyn had reached definitive agreement to acquire enron in a stock for stock transaction . the rating action reflected uncertainty over the combined company ' s risk profile . in terminating the agreement , dyn cited enron breaches of representations , warranties , covenants and agreements in the merger agreement , including the material adverse change provision . dyn also exercised its option to acquire the common stock of northern natural gas co . ( nng ) , an enron pipeline subsidiary . as part of the merger agreement , chevrontexaco corp . ( cvx ) , a 27 % stakeholder in dyn , provided a $ 1 . 5 billion cash infusion in return for preferred stock in dyn , who in turn made a $ 1 . 5 billion capital contribution structured as a preferred stock investment in nng with the option to purchase a single purpose entity that owns 100 % of nng ' s common stock .
fitch believes that dyn ' s exercise of its stock option on nng will be subject to legal challenges . of greater concern , additional litigation revolving around dyn ' s aborted merger appears likely , potentially creating unquantifiable financial liabilities .
dyn ratings on negative rating watch are as follows :
dynegy inc .
- - ` bbb ' implied senior unsecured debt .
dynegy holdings inc .
- - outstanding ` bbb + ' notes .
dynegy capital trust i
- - outstanding ` bbb ' trust preferred securities .
contact : fitch ralph pellecchia , 212 / 908 - 0586 or glen grabelsky , 212 / 908 - 0577 ( credit policy ) or hugh welton 1 - 212 - 908 - 0746 , new york
09 : 38 est november 30 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .