Enron To Form International Energy Business

By Agence France-Presse Houston-based energy firm Enron Corp. said May 9 it will no longer try to sell its international energy operations but will instead form a new company made up of those businesses. The new company, temporarily referred to as InternationalCo, is expected to be governed by an independent board of directors and be given protection from liabilities associated with the Enron bankruptcy. Shares of InternationalCo are expected to be distributed to creditors as part of the company's reorganization plan. InternationalCo will include all or part of Enron's interests in international electric and natural gas utilities and pipelines, as well as its interests in several other energy infrastructure businesses in Central and South America and the Caribbean. "After an extensive auction process and review, we determined that moving forward with InternationalCo was the best way to maximize value, which ultimately will be distributed to our creditors," said Stephen Cooper, Enron interim CEO. "We have continued to work with Enron's Creditors' Committee throughout the process and, under the current circumstances, they are supportive of this decision," Cooper said. Enron's board voted last month to move forward with the creation of a new pipeline operating entity, which includes Enron's interests in Transwestern Pipeline Company, Citrus Corp. and Northern Plains Natural Gas Co. Enron also is continuing with the auction process for the sale of certain major assets, including the Portland General Electric Co., EcoElectrica, Sithe/Independence Power Partners and Compagnie Papiers Stadacona. Enron, once among the largest and most profitable firms in the United States, filed for Chapter 11 bankruptcy protection in 2001 after a myriad of schemes to conceal its massive debts came to light. Copyright Agence France-Presse, 2003