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Enron picks Southern Union/GE as stalking horse after CrossCountry bid raised to $2.35 billion
New York, June 24 - Enron Corp. said it has selected Southern Union Co. and GE Commercial Finance Energy Financial Services' joint venture as the stalking horse bidder for CrossCountry Energy after Southern Union and GE raised their bid to $2.35 billion.
The choice was approved by the U.S. Bankruptcy Court of the Southern District of New York.
An auction will be held on Sept. 1 and a court hearing to approve the winning bid is scheduled for Sept. 9.
Enron expects to close the sale by mid-December.
"We are very pleased that these quality assets are generating value for our creditors," said Stephen F. Cooper, Enron's acting chief executive officer and chief restructuring officer, in a news release. "These pipelines are high-performing businesses, and that value was demonstrated today by the higher bids we received."
The selection of the joint venture, known as CCE Holdings, LLC, follows a bidding war before the auction even began.
Originally Enron agreed to sell CrossCountry to NuCoastal LLC for $2.2 billion plus the assumption of $430 million of outstanding Transwestern debt.
Late last week, the unsecured creditors' committee disclosed that there was a bid that was $55 million higher without naming the potential buyer. This week it emerged that it was the Southern Union/GE joint venture with a $2.3 billion offer including the assumption of $461 million of consolidated debt and no break-up fee.
Thursday NuCoastal upped its bid to $2.3056 billion but that higher price was again beaten by Southern Union and GE.
Enron, a Houston-based energy company, filed for Chapter 11 on Dec. 2, 2001. Its Chapter 11 case number is 01-16034.
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