Enron - Natural Gas Industry Message Board

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Gold/Mining/Energy : Enron - Natural Gas Industry

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To: Bryan Steffen who started this subject	12/3/2001 5:32:45 PM
From: buffaloha	of 1433

$1.5B DIP financing...in place. Looks like ENE is going to try to make a run of it. We'll see... NEW YORK (Dow Jones)Enron Corp. (ENE) secured $1.5 billion in much needed "debtor in possession" financing late Monday. Enron and 13 of its affiliates filed for Chapter 11 bankruptcy protection in the Southern District of New York on Sunday. The DIP financing was seen as critical for Enron to continue operating and especially crucial for the company to protect its trading operations. The loan, provided by Enron's two lead banks, J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C), is collateralized by all of Enron's assets, including $1.8 billion in proceeds for the sale of Enron's Portland General Electric to Northwest Natural Gas Co. (NWN), and Enron's two pipelines, the Northern Natural Gas pipeline and the Transwestern pipeline. A person familiar with the matter said that as part of the financing package, Enron will receive $250 million immediately. Another $250 million will become available as soon as J.P. Morgan Chase and Citigroup approve a business plan submitted by Enron. That's expected in the next couple of weeks. The release of the remaining $1 billion is contingent upon syndication and final court approval, the person familiar with matter said." WOW, if these banks took the pipeline as additional collateral, they must be pretty confident that DYN is not gonna prevail. Or else this was a deal in the works, but now is blessed by the protection of bankruptcy court and DIP protections. ENE has been fast at work....

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