Accounting firm PriceWaterhouseCoopers late last month said it has been appointed administrator of Enron Corp.'s London-based European operation, after the Houston energy giant's subsidiary sought protection from creditors under UK laws.
The appointment follows the credit-downgrading of Enron and the impact that has had on its ability to continue to trade, PWC said in a statement (see related story, p. 38).
What's involved
PWC said Enron's $1.3 billion, 1,875 Mw Teesside, UK, power station and the utilities and service businesses at the Wilton, UK, chemicals complex were not included in the administration order.
Tony Lomas, one of four PWC administrators appointed to Enron, said "There is already very serious interest in Enron's metal business, and negotiations are expected to lead to a successful deal in the near term."
But he noted that the Enron group built an "extraordinarily complex" network of integrated businesses that will take administrators some time to work through. He said PWC's primary focus will be on the large physical assets and trading position of the group.
"Inevitably, job losses are expected," he said. In the UK, the administrator is appointed by a court at the directors' request. Companies are allowed to continue operating under control of the administrator during a reorganization.
