Enron creditors boosted by utility sale
Enron has increased its recovery rates for unsecured creditors and agreed the sale of one of its remaining utility assets, Portland General Electric.
Enron will sell PGE to a newly created company called Oregon Electric, which is backed by US private equity company Texas Pacific and other investment groups.
The disposal will bring Enron £2.35bn and the sale price will include debt, the amount of which will be determined by the utility’s 2003 performance.
Enron has also improved the deal for its unsecured creditors, increasing recovery rates from 14.4% to 17.2%.