Enron to Raise Up to $6B in Asset Sale

NEW YORK – Troubled Enron Corp., which is now in bankruptcy court, said Wednesday it may sell its key energy trading unit and plans to raise up to $6 billion by selling other assets.

Chief Financial Officer Jeff McMahon said at a meeting of creditors that Enron plans to sell its troubled Azurix Corp. water unit, businesses in emerging markets and its wind energy assets. It plans to retain its exploration and production unit, wholesale and retail services and regulated businesses.

The company said the sale of the trading unit in an auction could result in a joint venture, an arrangement it plans to discuss with the creditors' committee in the next couple of days.

McMahon said Enron has about $13 billion in unsecured bank debt and an additional $2 billion in secured bank debt.

He said the Houston company plans to emerge from Chapter 11 bankruptcy protection within a year. On Dec. 2, Enron sought bankruptcy protection in the biggest such filing in U.S. corporate history.

Enron plans to raise between $4 billion to $6 billion with the noncore asset sale.

Shares of Enron were down 11 cents, or 15.3 percent, at 61 cents in afternoon New York Stock Exchange trade.