Steve Hall pointed me to this ...
 

 
Enron Auction Formally Set For Jan. 10,Ct Hearing Jan.11
By Kathy Chu
  
12/20/2001 
Dow Jones News Service 
(Copyright (c) 2001, Dow Jones & Company, Inc.) 


Of DOW JONES NEWSWIRES 

   
NEW YORK -(Dow Jones)- A federal bankruptcy judge here issued an order late Thursday formally allowing Enron Corp. (ENE) to auction off a majority stake in its energy-trading operations Jan. 10.

The sale is considered crucial to Enron's retention of key traders and customers - as well as to the company's restructuring efforts. 


The decision by federal Judge Arthur J. Gonzalez, of the Bankruptcy Court of the Southern District of New York, follows a Wednesday hearing on Enron's motion for an expedited sale of the business. 


All bids must be received by Enron Jan. 7, and a court hearing to approve the buyer will be held Jan. 11. 


The bidders must submit a "good faith" deposit of $25 million, according to court documents, to be retained by the bankrupt company pending the January hearing. 


Enron will own 49% of the joint venture, New Energy Trading Co., while the buyer will own 51%. 


The bankrupt company expects bids for its hardware, software - including its online trading platform - and its intellectual property. But potential buyers have expressed little interest so far in Enron's trading contracts, which are valued at $5 billion to $7 billion, according to Martin Bienenstock, of Weil Gotshal & Manges law firm, which represents the company. 


J.P. Morgan Chase, UBS AG and Citigroup have all expressed interest in the energy-trading business, people familiar with the matter have said. 


J.P. Morgan and Citigroup also recently provided Enron with a $1.5 billion debtor-in-possession financing, and both institutions serve on the company's 15-member official creditors committee. 


At the Wednesday hearing, Luc Despins, of Milbank Tweed law firm - which represents the group - said some creditors on the committee may be "interested" in making bids. To stave off potential conflicts, any bidders on the committee will be excluded from discussions about other potential offers for the energy-trading operations, he noted. 


-Kathy Chu; Dow Jones Newswires; 201-938-5392; 


e-mail: kathy.chu@dowjones.com



 

  
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