Enron gets $51.62 million offer for Enron Compression assets

By Jeff Pines

Washington, Sept. 22 - Enron Corp. has a purchase agreement with Paragon ECS Holdings to sell its Enron Compression Services Co. assets in New Mexico and Florida for $51.62 million, subject to better offers. Enron Compression is a unit of Enron's Enron North America Corp. subsidiary.

An order approving a hearing on the bidding procedures will be held on Sept. 30, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The $51.62 million base purchase price is subject to adjustment based on the forward price curve for natural gas at Henry Hub as published by the New York Mercantile Exchange.

Enron is asking the court for a $1.55 million break-up fee.

Enron wants to hold the auction on Oct. 18 in Houston with an Oct. 21 sale hearing on the results. Competing bids are due by Oct. 13. Initial overbids must be at least 4% higher than the base purchase price. Subsequent bids must be in increments of 1% higher than the previous bid.

Interested parties may bid on all of the assets being offered in New Mexico and Florida, or it may bid for only the New Mexico assets or only the Florida assets.

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

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