Enron's sale of Mariner Energy interests approved by judge

By Jeff Pines

Washington, Feb. 20 - Enron Corp.'s sale of its interests in Mariner Energy LLC to ACON Investments was approved by Judge Arthur Gonzalez, according to a Feb. 19 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The deal is valued at $271 million, including $135 million of bank debt, $100 million of equity, a $10 million note issued by Mariner Energy Inc., a unit of Mariner Energy LLC, to Joint Energy Development Investments LP, $24.17 million in cash and a $10.7 million claim against Enron North America, which the parties agree has a value of $1.94 million. The $10 million note will be secured by certain assets of Mariner Energy Inc.

Enron was unable to get an adequate price the first time it marketed its interests in 2002. Around the end of July, ACON contacted Enron and in late August the two signed an exclusivity agreement.

Mariner is controlled by the Enron-controlled partnership Joint Energy Development Investments LP. It is not involved in Enron's bankruptcy proceedings.

In March 2000, Mariner obtained an unsecured term loan with Enron North America. As part of the deal, the company issued Enron North America warrants to by up to 900,000 common shares at 1 cent per share.

Enron filed for bankruptcy on Dec. 2, 2001. Its Chapter 11 case number is 01-16034.

ACON Investments, a Washington, D.C.-based private equity firm. ACON has portfolio investments in the United States, Latin America and Europe and, among its activities, is affiliated with Texas Pacific Group, with over $5.7 billion of capital under management.

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