Enron Corp. to sell wind assets to General Electric Co.

The bankrupt Enron Corp. has agreed to sell the wind turbine manufacturing assets of Enron Wind Corp. to the power systems business of General Electric Co., but the deal's financial terms were not disclosed.

Feb. 25, 2002

By the OGJ Online Staff
HOUSTON, Feb. 22 -- The bankrupt Enron Corp. has agreed to sell the wind turbine manufacturing assets of Enron Wind Corp. to the power systems business of General Electric Co., but the deal's financial terms were not disclosed.

The transaction includes Enron Wind's global wind turbine manufacturing and marketing operations. The manufacturing plants are in the US, Germany, Spain and the Netherlands. Enron Wind also has 11 sales offices worldwide.

Wind farms that are owned or operated by Enron are not part of the deal.

Enron Wind said it will file a voluntary petition for Chapter 11 reorganization in the US Bankruptcy Court for the Southern District of New York. Subject to bankruptcy court and regulatory approvals, the sale is expected to close in the second quarter of 2002.

Stanley Horton, chairman and CEO of Enron Global Services, said Enron Wind was a good business, but "its future growth requires more capital than we can justify under current circumstances." Enron Wind is part of Enron Global Services.

Proceeds from the sale will help to repay Enron's creditors, Horton said (OGJ Feb. 18, 2002, p. 22).