Iberdrola bids $315m for Enron assets

2 April, 2002 – Iberdrola, Spain’s second largest electricity utility, has won the bidding for an unfinished power plant in Spain belonging to bankrupt US power company Enron.

The bid requires the approval of the bankruptcy court and involves Iberdrola paying $105m for a 1200 MW combined cycle plant being built in Arcos de las Frontera, near Cadiz as well as $210m for turbines and generators in Cadiz, New York and Netherlands.

Iberdrola outbid five other companies following nine months of negotiations and have now filed the necessary documents with the US Bankruptcy Court of the Southern District of New York. The sale will be considered on Friday and gains will be put into an escrow account to pay creditors.

The bid is conditional on approval by the bankruptcy court, with the clause aimed at protecting Iberdrola from Enron suppliers, including General Electric. Two GE units are seeking assurance from the bankruptcy court that payments for the turbines and generators not be rescinded to pay other creditors.

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