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Enron Corp. filed its reorganization plan Friday but it’s far from a finished product. The Houston energy concern still does not know how much cash will be available to distribute to creditors nor has a decision been made on what to do with its Portland General Electric Co. unit. What is known is how the plan treats Enron’s creditors holding $67 billion in claims. Those creditors generally will receive 70 percent in cash and 30 percent in stock in up to three reorganized Enron divisions. The three units are Cross Country Energy Corp., which will own Enron’s North American pipelines; International Co., which will hold Enron’s collection of South American and overseas assets; and Portland General Electric. Enron attorney Brian Rosen said a hearing is scheduled for Sept. 18 in which Judge Arthur Gonzalez in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan would approve a disclosure statement. But Rosen cautioned that the hearing could be pushed back to October. The estimated recoveries are based on the assets each Enron unit holds and the claims against it. Because of this, Enron Power Marketing Inc., which holds Enron’s infamous book of electricity trading contracts, will realize just a 21.3 percent recovery on its claims. Creditors of Enron North America are getting an 18.3 percent return while Enron Corp. claim holders are receiving a 14.3 percent recovery. Still, it’s uncertain what a reorganized Enron will look like after bankruptcy. “Portland General is still an active auction process,” said Enron spokesman Mark Palmer. He added that his company could still accept an offer for Cross Country and International Co. even though neither are on the block. Eric Sten, a city commissioner in Portland, Ore., has said he believes Portland General would eventually wind up in the hands of creditors. The municipality, with the backing of Goldman, Sachs & Co., had been one of the leading bidders for the utility. The second issue concerns how much cash Enron must pay creditors. Palmer said the company has about $5 billion in cash, but is still winding down the sale of its energy contracts as well as other assets. Along with selling PGE, Enron is also offering a stake in its cogeneration facility in Puerto Rico and a paper mill in Quebec. A unit of Barcelona’s Gas Natural SDG SA has made a $130 million stalking-horse bid for Enron’s Puerto Rico facility. It is hard to say what will happen in the coming months for Enron. But what will push the company’s exit from bankruptcy is that its official unsecured creditors committee and the Enron North America examiner Harrison Goldin both support the reorganization plan. Goldin, a former New York City Comptroller, has represented ENA creditors ever since Gonzalez denied the creation of an official ENA creditors’ committee. There were disputes over how Enron and ENA would proceed in bankruptcy, especially regarding intercompany claims. Enron’s prized trading business, after all, was part of ENA, before UBS Warburg bought this business in 2002. But with little rancor over this in recent months, the reorganization plan now offers creditors of Enron Power Marketing and ENA higher recoveries on their claims then Enron creditors. Although Goldin’s endorsement is noteworthy, his position does not represent all ENA creditors. “We are not in a position to comment on the positions of the individual ENA creditors,” a spokesman for Goldin said. For approval of the plan, Enron must win the support of half of each group of creditors and holders of two-thirds of the dollar amount. Because of some frantic trading in recent weeks on the secondary debt market, it is unclear if a dominant institutional investor has a controlling position in any of the creditor classes. Copyright �2003 TDD, LLC. All rights reserved.

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