The decision to group the companies together marks the end of Enron’s efforts to sell its interests in 19 natural gas pipelines and utilities, mostly located in the Caribbean and Latin America. Enron decided to bundle the companies under one umbrella because it decided they were worth more collectively than separately, Ambler said. Other US energy merchants, including Aquila, have been selling off assets to improve their financial situation, meaning many power and gas assets are being sold for much less than the original construction costs.
InternationalCo will have its own, independent board of directors and will have protection from liability claims associated with Enron's bankruptcy. The plan requires various board, bankruptcy court and other approvals, as well as the consent of the Official Unsecured Creditors' Committee, Enron said in a statement.
Enron also plans to change the name of the umbrella company within the next few months, Ambler added.