Enron to create international energy company, ends sale attempt

By Carlise Newman

Chicago, May 9 - Enron Corp.'s board of directors has elected to create a new international energy company comprised of the majority of its international energy infrastructure businesses, and will end the effort to sell its interests in those businesses.

Shares of the company, temporarily called "InternationalCo," will be distributed to creditors upon implementation of the company's reorganization plan. The formation of the new company will require various board, bankruptcy court and other approvals, as well as the consent of the official unsecured creditors' committee.

The new company is expected to be governed by an independent board of directors and given protection from joint and several Enron group liabilities associated with the Enron bankruptcy.

InternationalCo is expected to hold all or part of Enron's interests in its international electric and natural gas utilities and pipelines including Elektro, SK-Enron, Cuiaba, Vengas, Trakya, the Bolivia to Brazil Pipeline and Transredes, Nowa Sarzyna and interests in several other energy infrastructure businesses located primarily in Central and South America and the Caribbean.

As previously announced, Houston-based Enron's board voted last month to create a new pipeline operating entity, which includes Enron's interests in Transwestern Pipeline Co., Citrus Corp. and Northern Plains Natural Gas Co. Enron also is continuing with the auction process for the sale of major assets including Portland General Electric Co., EcoElectrica, Sithe/Independence Power Partners, and Compagnie Papiers Stadacona.

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