Enron seeks approval in bankruptcy court for rush sale of two assets

Sale would provide additional $395 million

Online Editor

WILMINGTON, Del., December 28, 2001 à‚– Enron Corporation has filed papers in U.S. Bankruptcy Court for permission to sell two assets before the year 2001 is out.

The rushed sale for a total of $395 million involves two of Enron’s subsidiaries, Enron Wind Development Corp. and Enron Canada Power Corp., according to a Reuters News Service report and papers filed Dec. 21 in the U.S. Bankruptcy Court in New York’s southern district.

Enron Wind Development has agreed to sell two new West Texas wind power generating facilities, Indian Mesa and Clear Sky, for $175 million to American Electric Power Inc.

If Enron Wind can sell the Texas facilities before Jan. 1, AEP would be able to take a $6 million depreciation deduction for the year.

Enron Canada Power is seeking to sell its interest in electricity from the Sundance electric generating facility in Alberta, Canada for $220 million to an alliance made up of AltaGas Services Inc. and TransCanada Energy.

The urgency behind the Sundance energy interest may lie in rumors that Enron Canada Power may have to follow suit with its parent company and also file for bankruptcy, Reuters said.

In its filing on Dec. 21, Enron noted that only 23 of its 3,500 units are part of the filing and that offers are continuing to come in for its non-debtor assets like turbines, power plant projects and California emissions credits.

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