Enron files for order approving extension to DIP financing

By Jeff Pines

Washington, May 6 - Enron Corp. asked the court to extend its debtor-in-possession financing, according to a May 5 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The letters of credit on its existing facility expire on or before May 21 while the facility matures on June 3. Without the extension, the Houston-based energy company could default on the contracts underlying the letters of credit.

Enron proposes to extend the facility to Sept. 3 on the same terms as its existing facility with JPMorgan Chase Bank and Citicorp as co-administrative agents.

The agreement calls for a 20 basis point extension fee of each lender's commitment and a $50,000 administrative fee.

A hearing on the request will be held May 13.

A May 6 order extends Enron's exclusive period to solicit votes on its plan until July 31.

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

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