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The Office of the United States Trustee named 11 financial institutions, three energy companies and one independent investor to Enron Corp.’s creditors committee — a mix that could lean toward a liquidation of the Houston-based energy company. At a meeting in New York Wednesday, U.S. Trustee Carolyn Schwartz announced that the committee would consist of 15 entities, including debtor-in-possessor lenders J.P. Morgan Chase & Co. and Citigroup Inc. According to a Reuters report, the committee will be led by representatives for commercial bank Wells Fargo and energy producer Williams Cos. Bank of New York, Credit Suisse First Boston, ABN Amro, Credit Lyonnais, National City Bank, Silver Creek Management, Oaktree Capital, St. Paul Fire & Indemnity, Duke Energy Trading, National Energy Inc. and Michael P. Moran, an individual, were also named to the committee. “Institutions dominate this committee,” said Peter Chapman, president of Bankruptcy Creditors’ Service Inc., a Trenton, N.J., firm that tracks bankruptcy cases. Bank lenders usually are not motivated to keep companies operating. They are motivated to get their money back.” The committee includes institutions — such as Citibank and J.P. Morgan — that lent heavily to Enron before it filed for Chapter 11 bankruptcy protection Dec. 2, Chapman noted. Institutions usually push to liquidate companies rather than risk their investors’ capital on a gamble to keep the company in business. The committee also includes two distressed bond buyers: Los Angeles-based Oaktree and Toronto-based Silver Creek. It is uncertain how they will lean, but they too could favor liquidating Enron depending on the price they paid for Enron’s bonds, Chapman said. Copyright (c)2001 TDD, LLC. All rights reserved.

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