Posts que contém a Tag Enron

The board of directors at bankrupt US power company Enron has abandoned attempts to sell a number of its Latin American businesses and has created a new company to manage those assets, Enron said in a statement.

The decision to create the new company, temporarily referred to as “InternationalCo,” was taken after the board and creditors decided the Enron estate would raise more revenues from ongoing operations that through individual asset sales, Enron spokesperson John Ambler told BNamericas.

Enron expects to present the reorganization proposal to the bankruptcy courts on June 30, and the hope is that the plan would be approved by 1Q04, Ambler said. Full financial details will be disclosed when the plan is presented to the courts, he said, adding that the new international company would be a “multi-billion dollar business.”

Most of the companies are ongoing, are not bankrupt and are largely self-sustaining, Ambler said, without commenting on future investment requirements.

If the plan is approved, shares of InternationalCo would be distributed to Enron’s creditors as part of its overall reorganization plan. This is likely to be added to the US$5bn raised so far from sales of assets to pay off creditors.

Enron’s existing equity holders will not receive any shares in the international holding company, Enron said in a statement, reaffirming previous statements that its existing equity has and will have no value and that shareholders cannot expect any recovery.
The new company will be governed by an independent board of directors and given protection from joint and several Enron group liabilities associated with the Enron bankruptcy, the statement said.

The new company’s Latin American assets include shares in various Bolivia-Brazil pipeline operating companies and interests in several South and Central American power generators.

Data de publicação: 12/05/2003
Fonte/Autor: BNamericas