Enron Bankers Delay Deadline for Financing
Enron Corp.’s bankers gained a 23-day delay of a deadline to get commitments for $1 billion in financing the energy trader said it needs to stay in business after filing the largest Chapter 11 bankruptcy.
A hearing on the financing in Bankruptcy Court in New York was postponed from Jan. 7 to Jan. 30, said to Martin Bienenstock of Weil Gotshal & Manges, which represents Enron.
“We have a lot of asset sales going on and don’t have an immediate need for additional funds,” Bienenstock said.
Bankers at J.P. Morgan Chase & Co. and Citigroup Inc. have been working to persuade lenders, including Bank of America Corp., UBS and Deutsche Bank, to take part in a $1.5-billion loan.
In a related proceeding, Enron will auction off a controlling stake in its energy-trading business at a hearing set for Jan. 10.
Internet-based trading generated about 90% of Enron’s $101-billion revenue last year.
Enron shares, which began the year at $83.13, fell 5 cents to 60 cents on the NYSE.
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