The end of Enron draws nearer.
Enron Corp. received court approval today to emerge from one of the most expensive bankruptcies in history.U.S. Bankruptcy Judge Arthur Gonzalez in New York signed off on Enron's plan to exit Chapter 11 bankruptcy protection with no notable adjustments.
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The ventures that once defined Enron as a leader in energy and other markets, such as trading and broadband, are long gone. The reorganization plan aims to pay most of the more than 20,000 creditors about $12 billion of the approximately $63 billion they are owed in cash and stock in one of three new companies created under the plan from Enron's remains.
Sales are pending for two of those companies -- CrossCountry Energy Corp., which comprises Enron's whole or part interest in three domestic natural gas pipelines, and Portland General Electric, its Pacific Northwest utility. The third is Prisma Energy International Inc., a smattering of pipeline and power assets in 14 countries, mostly in Latin America.
If the sales of CrossCountry and Portland General close later this year as expected, the $11 billion will be distributed to creditors with 92 percent in cash and 8 percent in Prisma stock.
If one or both of the sales crumble, creditors will receive less cash and more stock in the multiple companies. The Enron name will disappear.