|
|
Enron Mail |
Daschle Calls for Congressional Investigation of Enron Collapse
Bloomberg, 11/29/01 Enron Troubles Hit Houston Office Market; Tower Project Delayed Bloomberg, 11/29/01 NewPower Has Enough Cash to Run Through 2nd Quarter (Update1) Bloomberg, 11/29/01 TXU's Taylor Comments on Effect of Possible Enron Bankruptcy Bloomberg, 11/29/01 Nymex Tells Members Enron Trades Must Be Approved (Update1) Bloomberg, 11/29/01 Enron Metals Close to Finding a Buyer, Administrators Say Bloomberg, 11/29/01 German Bank Enron Exposure Between $9 Million and $100 Million Bloomberg, 11/29/01 Enron Corp. Is Poised to File Largest-Ever Bankruptcy Case Bloomberg, 11/29/01 Enron's Overseas Assets Could Complicate Bankruptcy Dow Jones Emerging Markets Report, 11/29/01 USA: ICE electronic energy trade soars on Enron woes. Reuters English News Service, 11/29/01 Unwind Of Enron Derivatives Could Be Mkt's Biggest Ever Dow Jones Capital Markets Report, 11/29/01 USA: US 10-yr T-note up full point on weak data, Enron. Reuters English News Service, 11/29/01 Reliant Resources Says Enron Situation Manageable and Presents Opportunities PR Newswire, 11/29/01 Enron European Counterparties Largely Blase On Exposure Dow Jones Energy Service, 11/29/01 USA: U.S. stocks buoyed by corporate earnings. Reuters English News Service, 11/29/01 Enron Troubles Hand Further Ammunition To Dollar Bears Dow Jones News Service, 11/29/01 UK: UK prompt electricity dives on Enron backlash. Reuters English News Service, 11/29/01 Enron Didn't Trade On Swiss Power Market Thursday Dow Jones International News, 11/29/01 US Power, Gas Markets Remain Orderly Despite Enron Exit Dow Jones Energy Service, 11/29/01 USA: Enron opens EOL trade system to unwind positions. Reuters English News Service, 11/29/01 GERMANY: German power jumpy, Cal 02 up on Enron crisis. Reuters English News Service, 11/29/01 Europe Funds' Exposure To Enron Limited; Many Sold Early Dow Jones International News, 11/29/01 Enron metals trading staff say BNP, Coke Metals, HSBC rumoured possible buyers AFX News, 11/29/01 Enron Said To Guarantee Europe Pwr Delivery Only Thu, Fri Dow Jones Energy Service, 11/29/01 USA: Dynegy cites deterioration in Enron operations. Reuters English News Service, 11/29/01 CSFB: Three Big Banks Have $1.5B Loan Exposure To Enron Dow Jones Capital Markets Report, 11/29/01 USA: UPDATE 1-Daschle says Congress needs answers on Enron. Reuters English News Service, 11/29/01 Enron Crisis Hits Four Japanese Money Mgmt Funds - Nikkei Dow Jones International News, 11/29/01 Enron Bonds Signal Anticipated Enron Bankruptcy Filing Dow Jones Capital Markets Report, 11/29/01 USA: NYMEX restricts trading with Enron. Reuters English News Service, 11/29/01 Enron Fallout Continues To Pressure Bank Sector Bonds Dow Jones Capital Markets Report, 11/29/01 Williams President Reaffirms 2001 Earnings Guidance; 15% Annual Earnings Growth PR Newswire, 11/29/01 Daschle Calls for Congressional Investigation of Enron Collapse 2001-11-29 12:30 (New York) Washington, Nov. 29 (Bloomberg) -- Following are comments made this morning by Senate Majority Leader Tom Daschle when asked about the collapse of Enron Corp.: ``We're certainly going to try to find answers to the questions involving the collapse of Enron. I don't know that anybody knows yet just how this happened and how it happened so quickly. ``I think we need to find as much information as is possible and make some assessment about whether it's indicative of energy in a larger context and if it is, what we ought to do about it. But clearly it raises some very serious questions.'' Enron Troubles Hit Houston Office Market; Tower Project Delayed 2001-11-29 12:25 (New York) Enron Troubles Hit Houston Office Market; Tower Project Delayed Houston, Nov. 29 (Bloomberg) -- Trammell Crow Co. delayed construction of a $108 million office development in downtown Houston, the first real estate project in the city to suffer the fallout from Enron's financial troubles. Trammell Crow delayed groundbreaking on the planned 34-story tower until at least next year, said Leah Rogers, a Trammell Crow spokeswoman. Construction was to have started next week. ``Given the national economic uncertainty and the uncertainty associated with the future availability of class `A' space springing from the recent events at Enron, we have decided to delay our construction start until future visibility improves,'' Matt Khourie, who heads Trammell crow's Houston development operations, said in a statement. Enron, the largest U.S. energy trader, may have to file for bankruptcy protection and liquidate assets after Dynegy Inc. abandoned its proposed purchase of the company, investors and analysts said. With Enron expected to give most of the 3 million square feet it occupies in Houston, developers will have a harder time filling projects, forcing rental rates down, brokers said. About 2 million square feet of Enron's space is in the city's downtown, where Trammell Crow's Ballpark Place project was planned. The project was to include apartments and retail space, and sit next to Enron Field, home to the Major League Baseball team Houston Astros, according to the Houston Chronicle, which reported the delay earlier. Houston has 4 projects under construction, including a 40- story, 1.17-million-square-foot tower being built by Enron next to its current headquarters. The projects are mainly being built for power companies, said Peyton Collins, head of property broker Insignia/ESG's Houston office. ``The downtown market is 5 percent vacant and if you look five years out, with all the space that's coming in line, vacancy rates could double,'' said Collins. Other Houston office projects underway include an 800,000- square-foot building in which Reliant Resources will lease 550,000 square feet, and a 600,000-square-foot tower, half of which will be occupied by Calpine Corp., according to Insignia. NewPower Has Enough Cash to Run Through 2nd Quarter (Update1) 2001-11-29 12:36 (New York) NewPower Has Enough Cash to Run Through 2nd Quarter (Update1) (Updates with financing details in second paragraph and Enron's third-quarter loss on investments in sixth paragraph.) Purchase, New York, Nov. 29 (Bloomberg) -- NewPower Holdings Inc., a venture formed by Enron Corp. to compete with traditional natural-gas and electric utilities, said it has enough cash and credit to run through the second quarter. The company is negotiating with lenders for $50 million for next year and another $50 million in 2003, spokeswoman Gael Doar said. NewPower, 44 percent owned by Enron, may need money to buy gas for winter inventories next year, she said. NewPower said a possible Enron bankruptcy filing probably won't affect its earnings. The Purchase, New York-based company said it can meet its credit obligations to Enron and utilities and will continue to deliver to customers. NewPower had 805,000 customers at the end of the third quarter and said it expects to have 840,000 to 860,000 by the end of the year. Most electricity customers are in Texas. Georgia is its largest gas market, Doar said. It also has business in Ohio, Pennsylvania and elsewhere. Dynegy Inc. yesterday abandoned its bid for rival Enron, once the biggest energy trader, after Standard & Poor's cut cash-strapped Enron's credit rating to junk status. Enron and Dynegy are based in Houston. Enron had $544 million in third-quarter losses on investments, including NewPower. NewPower reaffirmed it expects to lose 65 cents to 73 cents a share this quarter. It was expected to lose 72 cents, the average estimate of three analysts polled by Thomson Financial/First Call. Shares of NewPower rose 5 cents to 95 cents in early afternoon trading. They had fallen 91 percent this year. Enron, the most-active U.S. stock, fell 19 cents to 42 cents. It had dropped 99 percent this year. Earlier this month, NewPower said it will lose $210 million to $215 million, or $3.55 to $3.63 a share, this year. TXU's Taylor Comments on Effect of Possible Enron Bankruptcy 2001-11-29 12:45 (New York) London, Nov. 29 (Bloomberg) -- Following are comments by Paul Taylor, head of U.K. electricity trading at TXU Corp., the largest electricity trader in Britain, on the effect of Enron Corp.'s possible bankruptcy. TXU said earlier it's ``comfortable'' with its exposure to Enron and called the amount of open natural gas and electricity contracts with the largest U.S. energy trader ``immaterial.'' Taylor was speaking by telephone: ``It's very, very busy here, a lot of people have got a lot of positions to sort out, on both sides. So what you've seen is a lot of liquidity flowing around the U.K. OTC (over-the-counter), UKPX (U.K. Power exchange) and APX (Automated Power Exchange). Both of the exchanges confirmed they've liquidated the positions with Enron so there's no risk on them, so you're getting a lot of liquidity on them. But generally loads and loads of volume, like 500 megawatts next week just gone through, stuff like that. The traders are very busy. My job has been running around making sure letters are flying in the right place. The traders have been very busy.'' On whether he received calls from Enron employees seeking jobs: ``I wouldn't like to comment; I'm sure I can expect some of that sort of stuff but nothing yet today. I'm sure they've got other things to think about.'' Nymex Tells Members Enron Trades Must Be Approved (Update1) 2001-11-29 12:47 (New York) Nymex Tells Members Enron Trades Must Be Approved (Update1) (Adds margin increases in fourth-fifth paragraphs.) New York, Nov. 29 (Bloomberg) -- New York Mercantile Exchange President J. Robert Collins told floor members they could not accept orders from Enron Corp. unless they receive written authorization from an exchange clearing member. A fax from Collins to member firms today said the order was effective immediately and that it would ``remain in effect until further notice from the exchange.'' Clearing members are companies that guarantee transactions on the exchange, which trades energy and metals futures and options. The exchange yesterday said it will raise margins on its natural gas and crude oil futures contracts at the close of trading today. Margins are deposits traders must make with the exchange when buying or selling futures contracts to ensure obligations will be met. While the exchange gave no reason for the increase, the decision followed a day of wide changes in natural gas prices. The swings began after Dynegy Inc. abandoned plans to purchase Enron, once the biggest gas trader. Traders grew concerned that Enron might be forced into bankruptcy. Enron Metals Close to Finding a Buyer, Administrators Say 2001-11-29 13:32 (New York) Enron Metals Close to Finding a Buyer, Administrators Say London, Nov. 29 (Bloomberg) -- Enron Corp.'s metals unit, one of the biggest traders on the London Metal Exchange, is close to being sold, its administrator said, an accord that would end an 18- month foray into markets for copper and similar products. Possible buyers include HSBC Holdings Plc, Glencore International AG and the current management of the company, traders and analysts speculated. Officials at the companies couldn't immediately be reached for comment. ``There is already very serious interest in Enron's metal business, and negotiations are expected to lead to a successful deal'' soon, said Tony Lomas, a PriceWaterhouseCoopers administrator for Enron in Europe. ``Our primary focus will be on the large physical assets and trading position of the group.'' Traders and analysts have speculated that Enron Metals would be sold since Dynegy Inc. agreed earlier this month to buy Enron Corp. for $23 billion. After that accord collapsed yesterday, the metals unit seemed slated for a sale, analysts said. Enron agreed to buy the business, formerly MG Plc, for $445 million in May of last year. MG itself was the metals-trading unit of Germany's Metallgesellschaft AG and a century-old operation upon which that German construction, engineering and trading company was built. It is one of just 11 floor traders on the London Metal Exchange, the world's biggest metals bourse. Enron earned commissions though brokering trades there, charged rent at its warehouses owned by Henry Bath & Son Ltd. and speculated on the direction of metals prices. Declining Market The former chief executive of Metallgesellschaft, Heinz Schimmelbusch, in an interview earlier this month denied speculation that his Pennsylvania-based Safeguard International Fund LP was interested in buying Enron or any metals-trading operation. HSBC, Europe's biggest bank by market value, said last month it's considering a plan to add trading of industrial metals such as copper and aluminum to its precious-metals trading operation to meet demand from its customers. Any interest from Glencore may stem from its desire to expand its existing operations, said Mike Price, head of mining and metals at Societe Generale, which is itself a so-called Ring Dealer, or floor trader, on the LME. Whoever buys Enron Metals ``has to be somebody pretty substantial,'' Price said. If the current management hopes to be the buyer, ``they would need to find somebody with deep pockets.'' The new owner of Enron Metals will be entering the metals market at a time when copper prices have declined 15 percent this year and aluminum prices are 7 percent down as demand dropped from users such as aircraft makers and electronics companies amid slowing economies. The declining prices have led N.M. Rothschild & Sons, a member of the LME, to quit base metals trading and prompted Scotiamoccata, a metals-trading unit of Canada's Bank of Nova Scotia to leave the LME ring. The departure of Scotiamoccata reduced the number of ring dealers to 11 and raised doubts about the future of open-outcry trading at the exchange. The LME is promoting less-expensive electronic trading. German Bank Enron Exposure Between $9 Million and $100 Million 2001-11-29 13:32 (New York) German Bank Enron Exposure Between $9 Million and $100 Million Frankfurt, Nov. 29 (Bloomberg) -- Dresdner Bank AG, which is owned by Allianz AG, said its exposure to Enron Corp. is about $100 million. Deutsche Bank AG and Commerzbank AG said their exposure to Enron amounts to a ``double-digit'' million euros amount. Europe's largest bank has an exposure ``significantly'' below 100 million euros ($89 million), said Ronald Weichert, a spokesman for Deutsche Bank. Commerzbank's exposure is more than 10 million euros and less than 50 million euros, spokesman Peter Pietsch said. Dresdner expects ``way less'' than $100 million to default, and will take the appropriate loan loss reserves at the end of the year, said spokeswoman Elke Pawellek. The largest U.S. energy trader, may file for bankruptcy protection after Dynegy Inc. yesterday abandoned its proposed merger with Enron, forcing Enron to liquidate assets to pay some of its $15 billion in publicly held debt. Enron Corp. Is Poised to File Largest-Ever Bankruptcy Case 2001-11-29 14:04 (New York) Enron Corp. Is Poised to File Largest-Ever Bankruptcy Case Washington, Nov. 29 (Bloomberg) -- Enron Corp. is poised to file the largest bankruptcy reorganization in history after Dynegy Inc. scuttled plans to acquire the energy trader that is saddled with more than $15 billion in debt. Enron, with less than $2 billion in cash as of last week, must pay $690 million to lenders by mid-December and is responsible for another $3.9 billion in debt owed by affiliated partnerships. The Houston-based company's collapse was underscored by new restrictions on its operations. The New York Mercantile Exchange barred floor members from accepting orders from Enron without special written authorization, and the company's Internet trading was reduced from about 30 commodities to three products. A bankruptcy filing by Enron would top Texaco Inc.'s record $35.9 billion case in 1987, with creditors lining up to claim what's left of the company's more than $61 billion in assets. ``It's a black hole,'' said Gary Hindes, managing director of Deltec Asset Management LLC, which has no investment in Enron. ``Until the forensic accountants can get in there and sort things out, you just don't know what Enron's worth.'' Duke Energy Corp., J.P. Morgan Chase & Co., Williams Cos. and a dozen other companies say they may lose more than $1 billion combined from Enron's collapse. Electricity and natural gas companies said Enron owed them almost $600 million as of yesterday. In London, PricewaterhouseCoopers was appointed administrator of Enron's European holding company and some of its operating companies, a step other companies have taken before filing Chapter 11 papers in the U.S. Enron shares have lost more than $26 billion in market value in the last six months. Lawyers Enron has hired the law firm Weil Gotshal & Manges LLP, which has the nation's largest bankruptcy practice, and the Blackstone Group LP investment banking firm. Arthur Newman, head of restructuring at Blackstone, said his firm was retained but declined to comment further. Chapter 11 would let Enron officials continue to control the company while negotiating a recovery plan with creditors. A provision of U.S. bankruptcy law automatically blocks debt- collection efforts, lawsuits and other actions against the company. ``A Chapter 11 filing can be a great thing for a cash-starved company being attacked from all sides,'' said Nancy Rapoport, dean of the University of Houston Law Center. Thousands Affected An Enron bankruptcy would affect thousands of people, including the company's 21,000 employees, its customers, suppliers, investors and other creditors. The court-supervised recovery process would give Enron a chance to change strategies and fix mistakes. It might take years to complete and may end in the company's liquidation. In addition to its energy trading operation, Enron operates a nationwide gas pipeline system spanning 25,000 miles. It also owns Portland General Electric, which generates and distributes power to about 725,000 customers in the Pacific Northwest. The company's Enron Broadband Services is building a global fiber-optic communications network. Chapter 11 reorganization lets companies abandon onerous contracts and unprofitable leases. ``Every bad business deal Enron got into they'll walk away from,'' said Peter Chapman, a distressed-debt investor who also publishes newsletters on high-profile bankruptcy reorganizations. Recovery The goal in Chapter 11 is a recovery plan that allows a company to pay creditors and come out of bankruptcy. A plan typically must be approved by a majority of creditors representing two-thirds of a company's debts. Then a company would ask a bankruptcy judge for final approval. The recovery plan divides a company's value among various classes of creditors. Under a hierarchy set by the U.S. Bankruptcy Code, secured creditors -- those with collateral backing their claims -- are paid ahead of unsecured creditors, such as bondholders and suppliers. Financial advisers to creditors and companies in large bankruptcies say a Chapter 11 recovery plan for Enron would be particularly difficult to produce. ``You have a host of intangible assets combined with a morass of contingent liabilities creating a potential witches' brew of a bankruptcy,'' said Jeff Werbalowsky of Houlihan Lokey Howard & Zukin, an investment banking firm that has been contacted for advice by Enron bondholders. Shareholders Enron's shareholders are likely to lose all of their investment in a Chapter 11 case because they would be last in line to get paid. Enron shares fell 20 cents, or 33 percent, to 41 cents in afternoon trading. The shares traded at $54.54 on June 4. The company said this morning it was evaluating whether it will pay a scheduled 12.5-cent quarterly dividend on Dec. 20. Enron's bond prices reflect the uncertainty about the company's value. The company's 6.4 percent notes that mature in 2006 were unchanged at about 22 cents on the dollar, traders said. At that price the notes yield 53 percent. Some recovery for Enron creditors in a bankruptcy case may come from lawsuits, said Russell A. Belinsky, an investment banker with Chanin Capital Partners, which also has been approached for advice by Enron bondholders. ``There's a lot of juicy legal issues,'' said Belinsky. Potential targets include Enron's accounting firm and its officers and directors. ``Disentangling all the pieces in a reorganization is going to be a painstaking job,'' he said. Liability Dynegy might face some liability for canceling its purchase of Enron. Dynegy invoked terms of the buyout agreement that gave it the right to purchase an Enron natural gas pipeline if the takeover fell apart. Dynegy received the right to the pipeline in exchange for a $1.5 billion investment in Enron by ChevronTexaco Corp., which owns one-fourth of Dynegy. Enron might use bankruptcy to prevent Dynegy from walking away from the buyout and claiming ownership to the pipeline. The Dynegy acquisition, valued at $23 billion when it was proposed on Nov. 9, collapsed as bankers failed to raise the $1.5 billion Enron needed to operate until the deal was completed. The lack of funds and a credit downgrade contributed to Dynegy's decision. Bankers led by J.P. Morgan Chase & Co. Vice Chairman James B. Lee tried for two weeks to raise the cash Enron needed. Investors turned them down because of heightened concern Enron wouldn't be able to pay its debts. Three credit-rating agencies yesterday cut Enron's credit rating to junk status, triggering an acceleration of the company's debt obligations. Unraveling Enron's unraveling began in October after it said shareholders' equity was reduced by $1.2 billion because of the way the company accounted for outside partnerships it created. The announcement prompted lawsuits and an investigation by the U.S. Securities and Exchange Commission, and Enron ended up restating earnings for almost five years. As shares plunged, Enron's trading partners lost confidence the company would have the cash to pay bills. Trading partners such as Mirant Corp. either demanded more collateral to trade or restricted trading with the company. ``The situation is dire,'' said Deltec's Hindes. ``No one's going to trade with Enron right now because you could wind up being an unsecured creditor tomorrow.'' Enron's Overseas Assets Could Complicate Bankruptcy By Charles Roth Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones Emerging Markets Report (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- As Enron Corp. (ENE) teeters on the edge of insolvency, its creditors, power industry players and even foreign governments are angling to lay claim to the company's assets. In an example of how far the ripples are being felt, the Brazilian government said Thursday it's legally entitled to seize Enron's assets in that country if the U.S. energy titan files for bankruptcy. The Houston-based company has more than $60 billion in assets, a little more than 10% of which are considered "non-core" or located overseas. Indeed, of Enron's 10,453 megawatts in total power production, 8339 MW are generated internationally. As it established a presence in dozens of countries, Enron also diversified into oil and gas exploration and production, power generation, and even non-energy related businesses such as forest products, metals and steel, broadband and credit evaluation systems. Although Enron's non-core and global forays haven't on the whole been profitable, there is value in some of the hard assets. And while it's not clear whether or how claims by foreign governments on Enron assets would be honored, it's certain the company's myriad overseas holdings will further addle what would likely be a vastly complex bankruptcy proceeding. The following is an overview of a number of those holdings outside the North American continent, according to some of the most recent data provided by the company, which didn't, however, specify the extent of its equity interests or operational control in the majority of the assets listed. Approximately 70% of Enron's assets outside North America and Europe are located in Central and South America and the Caribbean: ---Brazil: Enron controls electricity distributor Elektro Eletricidade e Servico SA (E.EKO), which was acquired in 1998 for BRR1.479 billion ($1=BRR2.48). It also owns two gas-fired thermoelectric plants: Eletrobolt, with a capacity of 380 megawatts, and Cuiaba, with a 480-MW capacity. Enron also owns important stakes in natural gas distributor Companhia Distribuidora de Gas do Rio de Janeiro (E.CDR), or CEG, and its smaller unit CEG-Rio. In late April, Brazil's oil giant Petroleo Brasileiro (PBR), or Petrobras, agreed to pay $240 million for the stake Enron owns in CEG. Petrobras agreed to buy the 25.38% stake the U.S. energy group owns in CEG as well as the 33.75% stake Enron has in CEG-Rio. The deal is still seen closing in the next few days. ---Puerto Rico: Enron has been poised to sell in the weeks ahead a 49% interest in the 507 MW EcoElectrica power plant and liquified natural gas terminal for about $250 million. It's also involved in a 20,000 metric ton liquefied petroleum gas storage terminal and the San Juan Gas distribution company, which has a capacity to carry approximately 400,000 cubic feet a day. ---Bolivia: Enron is an operator on the Bolivian side of the 3,000 kilometer Bolivia-to-Brazil natural gas pipeline, and holds a small 4% interest on the Brazilian side. ---Argentina: Enron has an interest in Transportadora de Gas del Sur, a 5,005 kilometer pipeline. ---Venezuela: Enron, in cooperation with Vengas, is involved in a leading transporter and distributor of LPG, among other assets. ---Colombia: Enron has stakes in the Centragas pipeline, a 578 KM natural gas transmission system, and Promigas, a top natural gas company. ---Panama: Enron holds a 355 MW electricity generation plant. ---Guatemala: Enron has two power plants with combined generating capacity of 234 MW. ---Dominican Republic: Enron has a 185 MW power facility. The company also has a sizeable footprint in Asia, particularly in India: ---India: About 14% of Enron's international assets are located in India, home to its mammoth $3 billion Dabhol power project, which has a generation capacity of 2184 MW. Enron is also poised to sell its Offshore India Oil & Gas Ltd., an offshore exploration and production company, for $388 million to BG Group PLC (BRG). ---South Korea: Enron, together with SK Corp., has interests in a gas distribution and LPG marketing holding company that, through subsidiaries, owns and operates eight city gas companies, among other activities. ---China: Enron has a joint-venture with Sichuan Electric Power Co. in a 284 MW coal-fired cogeneration plant. ---Guam, Philippines: Enron has smaller power generation plants in both these countries. Enron has also built up a presence in Europe: ---U.K.: Enron is co-owner of the 1875 MW Teesside Power Ltd. plant and holds the much smaller Wilton U.K. power company. It also is involved in the Wessex Water utility. ---Italy: Enron has the 551 MW Sarlux power project. ---Turkey: Enron has the 478 MW Trakya power plant. ---Spain: Enron is currently building the 1200 MW Arcos de la Frontera power plant. ---Poland: Enron has a 116 MW power plant. -By Charles Roth, Dow Jones Newswires; 201-938-2226; charles.roth@dowjones.com (Geoffrey Smith in London contributed to this article.) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: ICE electronic energy trade soars on Enron woes. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - The InterContinental Exchange (ICE), an Atlanta-based electronic energy and metals marketplace, said on Thursday that trade on its system in late November was up 65 percent from October. ICE has been setting new trading records in recent weeks, as concerns over energy trader Enron Corp.'s crumbling credit rating diverted on-line business to the exchange. Enron suspended operations of EnronOnline, ICE's main rival for Internet-based trading, on Wednesday after Standard & Poor's cut Enron's credit rating to "junk" status, killing a potential takeover by Dynegy Inc.. Enron, which said it has no plans to permanently dismantle its electronic trading system, said it reopened EnronOnline Thursday to allow parties to unwind outstanding positions. Until this month, Enron was by far the nation's largest trader in North American natural gas and electricity, with industry analysts estimating it was involved in some 25 percent of all daily trade in those markets. In addition to increased volumes, ICE has also seen a big jump in the number of users tapping into the system, up 30 percent from October, the exchange said in a statement. "Over the past couple of weeks we have experienced an increase in total volumes and registered users," said Jeffrey Sprecher, chief executive officer of ICE. "We believe the inherent credit concerns in the OTC (over-the-counter) market have spawned interest in a many-to-many trading platform as opposed to a one-to-many platform. Sprecher also said ICE would continue to look for ways to expand its trading platform to accommodate new participants. As an open-access marketplace, InterContinental Exchange now has over 400 commodity trading firms participating. The ICE electronic trading system is now installed on over 7,500 desktops worldwide, a 7 percent gain in the past two weeks. Products traded on ICE include natural gas, power, crude oil and refined products, precious metals and emissions allowances. InterContinental Exchange has offices in New York, Houston, Chicago, London and Singapore and is owned by over 100 energy and metals traders, brokers and bankers. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Unwind Of Enron Derivatives Could Be Mkt's Biggest Ever By Joe Niedzielski Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones Capital Markets Report (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- As the clock ticks on Enron Corp.'s (ENE) potential bankruptcy filing, derivatives dealers are bracing for perhaps one of the biggest unwindings ever of positions in the over-the-counter market. Proposals are already being floated over how dealers and other counterparties to contracts with Enron will go about determining the value - or replacement costs - of those contracts should Enron file for bankruptcy protection. Replacement costs are used to net out what counterparties owe to each other in the event of a default or termination event. A blizzard of paperwork for dealers and other counterparties would likely follow an Enron bankruptcy. That's because standard derivatives contracts generally call for counterparties to canvass four dealers for a replacement quotation and then take an average of those quotes. Dealers are expecting the quotes to swing wildly should Enron's derivatives contracts be terminated because of a bankruptcy. And ironing out the market quotes could take weeks or even months, according to one market participant. Enron, a major player in commodity and energy-related derivatives, among others, had derivatives trading liabilities to third parties of around $18.7 billion as of Sept. 30, according to Swaps Monitor in New York, which tracks the global over-the-counter derivatives market. The Houston-based energy and trading firm's liabilities are similar to replacement costs for Bank of America (BAC) and Barclays, two financial firms with higher credit ratings and greater financial resources. While Enron's relate almost entirely to energy derivatives, those of Bank of America and Barclays arise mainly from interest rate and currency derivatives, Swaps Monitor says. There's been some big fallouts in the derivatives markets over the years, though observers say Enron's could be among the most complex. The derivatives market's first liquidation of size followed the 1990 bankruptcy filing of Drexel Burnham Lambert, the securities firm known for its high-yield dominance. Swaps Monitor estimates that Drexel's interest rate derivatives book at the time was in the range of $25 billion to $30 billion on a notional or face value basis. But at the time of its bankruptcy, Drexel owed its counterparties no more than "a few hundred million dollars on its derivatives contracts," Swaps Monitor says. The collapse of Barings Bank in January of 1995 stemmed from positions in exchange-traded derivatives and the bank didn't have a meaningful presence in the over-the-counter market. Even so, OTC market participants took note and instituted greater oversight within their OTC operations. The Asian financial crisis led to the demise of several firms including Peregrine Fixed Income. Replacement costs relating to Peregrine were far smaller than what's expected if Enron's derivatives were to face an early termination event. Enron's current liabilities may be less if it was able to reduce the size of its book since September. It may have also terminated trades at the request of its counterparties. And Enron may also owe less if its counterparties required it to put up more collateral to offset their credit exposure to Enron. Enron's replacement costs through September as tracked by Swaps Monitor are down from around $21.4 billion through the end of last year. Through that period, about 29% of Enron's trading liabilities were with energy marketers, 25% were with gas and electric utilities, 23% with financial institutions, 13% with oil and gas producers, 5% with industrials, 4% with independent power producers and 2% with other entities, according to Swaps Monitor. -By Joe Niedzielski, Dow Jones Newswires, 201-938-2039; joe.niedzielski@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: US 10-yr T-note up full point on weak data, Enron. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - U.S. benchmark 10-year notes soared more than a full point on Thursday as a broad Treasury market rally on hopes for another Federal Reserve rate cut extended amid concerns the beleaguered energy-trading company Enron will soon file for bankruptcy. Enron Corp. stood at the abyss of bankruptcy on Thursday, as its European arm filed for creditor protection and creditors assessed their exposure to one of the world's biggest-ever corporate collapses. "It looks like Enron is going to file bankruptcy," said Jim Claire, head of fixed income trading at Evergreen Institutional Asset Management in Charlotte, North Carolina. "This is kind of a flight to quality." An early report showing a spike in weekly jobless claims in the past week highlighted the frail U.S. economy, boosting market expectations that the Fed will cut interest rates for the 11th time this year at its policy meeting on December 11. At 1:13 p.m. (1813 GMT), two-year notes were up 8/32 to 100-1/32, yielding 2.96 percent. Five-year notes climbed 22/32 to 97-3/32, yielding 4.15 percent. Benchmark 10-year notes were up 30/32 to 101-14/32, yielding 4.81 percent. Thirty-year bonds were up 1-15/32 to 101-24/32, yielding 5.26 percent. . Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Reliant Resources Says Enron Situation Manageable and Presents Opportunities 11/29/2001 PR Newswire (Copyright © 2001, PR Newswire) HOUSTON, Nov. 29 /PRNewswire/ -- Reliant Resources, Inc. (NYSE: RRI) today announced that it is confident that the wholesale energy markets will work through the implications caused by Enron's recent credit rating downgrade. Because the deterioration in Enron's credit position has occurred over a period of weeks, the market and Reliant Resources have had opportunities to prepare for such an event. Reliant Resources' current exposure to Enron is approximately $80 million, primarily from power sales from the company's asset portfolio and natural gas sales from its trading portfolio. Reliant Resources has already seen additional market opportunities as a result of the situation and is increasing its efforts to serve new and existing customers. Reliant Resources, based in Houston, Texas, provides electricity and energy services to wholesale and retail customers in the U.S. and Europe, marketing those services under the Reliant Energy brand name. The company has nearly 18,000 megawatts of power generation capacity in operation, under construction or advanced development, or under contract in the U.S. Reliant Resources is one of only five companies to rank among both the ten largest power marketers and the ten largest natural gas marketers in North America. The company also has wholesale trading and marketing operations and nearly 3,500 megawatts of power generation in operation in Western Europe. At the retail level, Reliant Resources provides energy services and will serve approximately 1.7 million customers in Texas when the electricity market opens to full retail competition in January 2002. Reliant Resources currently is a majority-owned subsidiary of Reliant Energy (NYSE: REI). This news release includes forward-looking statements. Actual events and results may differ materially from those projected. Factors that could affect actual results include the timing and impact of future regulatory and legislative decisions, changes in Reliant Resources' business plans, financial market conditions and other factors discussed in Reliant Resources' filings with the Securities and Exchange Commission. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X25865849 /CONTACT: media, Sandra Fruhman, +1-713-207-3123, or investors, Dennis Barber, +1-713-207-3042, both of Reliant Resources, Inc./ 13:13 EST Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron European Counterparties Largely Blase On Exposure By Mark Long Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- Three major spot power market exchanges suspended Enron Corp.'s (ENE) right to trade Thursday, but the one-time energy giant's major European counterparties were more relaxed about their exposure to the company, indicating they had made full use of the breathing space afforded by Dynegy Inc.'s (DYN) unsuccessful rescue bid. UKPX banned Enron from spot power trade Thursday because it defaulted on contracts. Nord Pool suspended Enron's trading rights because Enron failed to meet margin requirements. APX declined to comment on why Enron was suspended from U.K. trade. Spanish pool operator OMEL was unavailable to comment on Enron's status as a market participant in Spain. Statements by leading U.K. and German companies hint that energy companies without balanced portfolios of assets may see the biggest problems on the back of the Enron debacle. U.K. multi-utility Innogy PLC's (IOG) chief executive Brian Count told journalists early Thursday his company wasn't overexposed to the defunct energy trader, although he declined to comment on Innogy's level of exposure. "From where I sit, there's one less competitor and still the same number of customers who want risk management services," Count told journalists in a telephone conference call following the release of Innogy's first-half results. "We've had Enron under review for last five weeks," he added. "We've actively managed that situation and as a company we're comfortable with our position with Enron. We'll regard it as an opportunity." Powergen PLC (PWG), the U.K. power giant, said it isn't overexposed to Enron and anticipates no negative change in its market position if Enron goes bankrupt. "Powergen manages risk in such a way that there will not be any negative material impact on us if Enron becomes insolvent," said a spokeswoman for Powergen. Industry sources say Powergen was among the first to stop trading with Enron, and the company is generally highly credit-conscious. Spokesmen at both Scottish Power PLC (SPI) and Scottish & Southern Energy (U.SSO) said they weren't dangerously exposed to Enron and had ceased trading with the U.S. company some time ago. "We had no material exposure whatsoever," the spokesman for Scottish Power said. In Germany, RWE Trading AG, a unit of RWE AG (G.RWE), told German news agency VWD Thursday that its exposure to Enron will be in the region of EUR10 million-EUR11 million and added it will be able to cover any shortfall in supply from the Enron difficulties. Contrasted to these are Centrica PLC (U.CTR), British Energy PLC (BGY) and particularly Duke Energy Corp. (DUK), all of which are less vertically integrated. U.K. multi-utility company Centrica said Thursday that it has contracts worth GBP30 million with Enron but it is "confident" it will be able to supply power to all its customers should Enron default on its contractual obligations. British Energy declined to comment on its exposure to Enron, but an industry source said BE likely has a lot to lose by Enron's demise, because BE did so much of their power trade through Enron. Now, they'll have to renegotiate their contracts and possibly lower their prices to sell their power. But the scale of most individual European parties' exposure is dwarfed by the equivalent problems of Enron counterparties in North America. For example, Duke Energy, which has about $100 million in non-collaterized exposure to Enron and has halted trading with the energy conglomerate. In addition to these, Goldman Sachs analyst Jonathan Raleigh told Dow Jones Newswires that companies with the greatest exposure to Enron include Aquila Energy Corp. (ILA), Dynegy, Mirant Corp. (MIR), American Electric Power Co. (AEP) and Reliant Resources Inc. (RRI). He estimates the companies, with Duke, each have exposure in the range of $50 million to $100 million. -Mark Long; Dow Jones Newswires; +44 (0)20 7842 9356; mark.long@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: U.S. stocks buoyed by corporate earnings. By Haitham Haddadin 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - Stocks were up in midday trading on Thursday, buoyed by upbeat earnings from Palm Inc. and others, but investors remained on tenterhooks due to concern over the near collapse of energy trader Enron Corp.. Investors got a mixed bag of economic reports but the balance tilted to the positive. New home sales and orders for durable goods rose. But investors also got downbeat news on unemployment, suggesting continued weakness in the U.S. jobs market. "We've got plus two and minus one; so we are doing a little bit better but it just feels like you are not going to really explode to the upside at all," said Todd Clark, co-head of equity trading at WR Hambrecht. "The market is just going to sit here for a while, it will continue to correct the rally that we had. Markets don't go up in a straight line." The technology-laced Nasdaq Composite Index rose 27.01 points, or 1.43 percent, to 1,914.98. The blue chip Dow Jones industrial average was up 32.24 points, or 0.33 percent, at 9,744.10. The broader Standard & Poor's 500 Index was up 5.84 points, or 0.52 percent, at 1,134.36. Among active Nasdaq stocks, Palm rose after the hand-held computer maker said it expects to meet analysts' estimates. Palm rose 15 cents to $3.56, or 4.4 percent. Software provider FreeMarkets Inc. rose sharply on the Nasdaq after it raised its revenue and profit outlook. FreeMarkets jumped $3.98 to $17.57, 29.2 percent. Storage networking company Brocade Communications Systems Inc. rose $2.43 to $31.25 on the Nasdaq. Its profits fell sharply as the slower economy kept corporate buyers on the sidelines but still managed to meet Wall Street's estimates. Enron, teetering on the brink of one of the biggest corporate implosions in U.S. history, plunged 85 percent in frenzied trading Wednesday and fell 34.4 percent, off 20 cents at 41 cents on the New York Stock Exchange. It sank as low as 35 cents initially. Enron was crushed by rival Dynegy Inc.'s decision to pull out of its planned $9 billion takeover of the beleaguered energy trader. The S&P Natural Gas index lost nearly 4 percent at one point but later cut losses. Thursday's drop reflected losses in other firms such as Williams Cos. Inc., down $1 to $26.05. Dynegy fell 87 cents to $35.02. "Enron went from a done deal to a dead deal," said Alan Ackerman, market strategist with brokerage Fahnestock & Co. "The Enron collapse may have significant ramifications on banks and other energy companies where contracts with Enron may now not be honored. And the Enron equity may be worthless." Financial giants Citigroup Inc. and J.P. Morgan Chase & Co. Inc., which lent money to the proposed Enron-Dynegy merged company, saw their stocks fall for a second day running but later rebounded. Citigroup rose 51 cents to $48.31 and J.P. Morgan rose 5 cents to $37.55. Both are components of the Dow index. NVIDIA Corp. soared after Standard & Poor's said the multimedia graphics firm will replace energy trade Enron in the S&P index of 500 top companies. NVIDIA soared $3.24 to $54.60, or more than 6 percent. Sales of new U.S. homes rose for the second straight month in October, inching up 0.2 percent to an annual rate of 880,000 units, suggesting the housing market continues to be a bright spot in the ailing U.S. economy. Orders for costly U.S. durable goods surged at the fastest rate on record in October by 12.8 percent to $184.8 billion, the largest gain since the Commerce Department began records in March 1992. The increase was led by huge orders for aircraft and defense capital goods as well as cars. The data may help rekindle hopes that the economy has rebounded since the Sept. 11 attacks. Orders for motor vehicles, which were likely spurred on by increased demand due to zero interest rate loans for car purchases, jumped 10.6 percent. But the number of Americans lining up for first-time jobless benefits rose by 54,000 last week, exceeding Wall Street expectations. "We saw an encouraging number in the durable goods but it's too early to see this as a sustained trend up and layoffs continue to be a real concern," Ackerman added. H&R Block Inc., the No. 1 U.S. tax preparer, rose $2.22 to $38.22, or more than 6 percent. The company raised its profit forecasts for the current fiscal year helped by new accounting rules and strong mortgage business. Conexant Systems Inc. rose after saying it expects revenue for the December quarter to be 5 percent to 7 percent above the prior quarter's, driven by strong demand for chips used in wireless devices like mobile phones. Its stock rose 53 cents to $15.60, or 3.5 percent. Acambis Plc's American Depositary Receipts shot higher on news the U.S. government awarded the British company, along with Baxter International Inc., a $428 million smallpox vaccine contract. Acambis ADRs rose $7.3 to $45, or 19.3 percent, and Baxter shares rose $1.74 $51.90. BioReliance Corp. was up 8 percent, or $2.14 to $28.19, after the company said it would help Acambis produce the vaccines under the huge contract. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Troubles Hand Further Ammunition To Dollar Bears By Grainne McCarthy Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones News Service (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Like oxygen fanning a flame, the financial woes of Enron Corp. have helped amplify already-negative sentiment towards the dollar. For now, economists don't think Enron's difficulties are having a direct effect on foreign exchange markets, but the prospect of the U.S. energy giant going bankrupt has focused attention once again on the underlying risks to the U.S. economy and major corporations, adding to existing warnings signs about the likely length and depth of this recession. "If you ask whether this will have a long-term impact on the currency market, I would say not very much," said Hans Redeker, head of global currency strategy at BNP Paribas in London. "But in the short term it was good enough to cover positions," he added, noting that Enron's woes were firming market opinion that U.S. "earnings will be lousy and it will take a long time for companies to rebound." Indeed, the escalation of Enron's troubles came as market confidence in the dollar was starting to wane in any case, due to several factors. Weak consumer confidence data released on Tuesday, along with a gloomy outlook for the economy by the Federal Reserve helped feed a niggling view that the market may have been overly optimistic in its recent outlook for the dollar. The speculative community, which had built up substantial long dollar positions, began unwinding those trades on the back of this shift to a more pessimistic view. Enron served only to accelerate that process. "The market was ripe for an unwinding of long dollar positions," said Robert Sinche, head of global currency strategy at Citibank in New York. "Enron...is the kind of situation that just acts as a catalyst." This view comes as many economists were starting to question the rally in U.S. stocks - which has helped support the dollar in recent weeks and in turn driven rallies in other export-dependent economies, including those in Southeast Asia. Many reckon the rally was premature and was lending some false support to the dollar. If Enron does file for bankruptcy, analysts and lawyers reckon it would be one of the messiest, most complex bankruptcy cases ever, spreading tentacles across the world due to the energy company's global reach and massive financial trading operation involving tends of billions of dollars in complex contracts. This would have spillover effects in currency markets, primarily due to its likely negative impact on the stock or bond markets. "To a huge extent, it does depend on what is going on with Enron," said Redeker. "If it goes belly up, then I would say there is a chance of getting a move in the euro to higher levels. But if there was some kind of support of a banking consortium to help them out, then people would become interested in corporate swap spreads again, which would in turn help the dollar." The Enron woes helped push the dollar Thursday below key technical resistance levels against both the euro and the yen, adding to overall skittishness in the market. "We're seeing some very volatile price action," said Dustin Reid, currency strategist at UBS Warburg in Stamford, Conn. The dollar has managed to claw back many of those gains in New York trade, partly due to a bounce in U.S. stocks, but also, somewhat ironically, due to rumors that Enron-related losses are threatening the solvency of a major Japanese bank. There was no evidence of this or reports of a particular effect on Japanese banks from the Enron saga. Five Japanese asset management companies did confirm however, that their investment trust products include funds in Enron Corp. (ENE) bonds. According to the reports, the money management funds have fallen under par value, a significant loss of principal given that the funds total more than Y3 trillion in size. -Grainne McCarthy, Dow Jones Newswires; 201-938-2381; grainne.mccarthy@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. UK: UK prompt electricity dives on Enron backlash. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Nov 29 (Reuters) - British day-ahead electricity prices slumped on Thursday as traders dumped power onto the market after cutting ties with troubled Enron . Day-ahead electricity was trading down to 15 pounds per megawatt hour from 26.5 pounds on Wednesday. "Certain parties have cut lines with counter parties and have ended up having to dump electricity on the market," said one trader. The electricity flooding the prompt market is power which would have gone to Enron and is likely to be generated from plants which cannot easily be switched off, such as nuclear power stations. Enron's European business was placed into administration on Thursday as its parent stands on the brink of bankruptcy after a rescue deal with smaller rival Dynegy fell apart. In forward curve trading prices for the summer 02 baseload contract finished 10 pence higher 17.39 pounds and winter 02 baseload was down ten pence at 19.25 pounds, traders said. Traders said companies could start terminating contracts with Enron under the terms of the over-the-counter market's standard GTMA contract. A clause in the GTMA allows immediate termination should a counterparty become insolvent. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Enron Didn't Trade On Swiss Power Market Thursday 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) ZURICH -(Dow Jones)- Failing energy company Enron Corp. (ENE) didn't trade in the Swiss power market Thursday, dealers said Thursday. While liquidity dropped slightly due to Enron's absence, prices were much in line with the market's expectations, at around EUR32.50 for base load and EUR40 for peak load. Dealers said Enron's pulling out of the market didn't have a dramatic effect on liquidity despite the U.S. group's usually strong presence because Germany's leading players, including RWE AG (G.RWE) and E.On AG (EON), filled the gap. "Anyway, Enron hasn't been very active during the past days as troubles became more acute in the company," one dealer at Elektrizitaets-Gesellschaft Laufenburg, or EGL, (Z.EGL) said about the decline in volume. Dealers of EGL and Aare-Tessin AG fuer Elektrizitaet (Z.AAR), Switzerland's biggest energy trading houses, said their companies didn't have any exposure to Enron. After the Swiss market closed, the New York Mercantile Exchange advised its floor members that they were not to accept any order placed directly to the trading floor by Enron or an Enron-affiliate, unless they have received express written authorization from an exchange clearing member carrying an Enron account. The news sent prices down at Nymex. In Switzerland, only Zurich's city power utility Elektrizitaetswerk der Stadt Zuerich, or EWZ, has close relations with Enron. EWZ and Enron, which have been working together during the past two years, had planned to set up a trading unit in Switzerland. But EWZ pulled out of the deal as its problems became apparent in mid-October, when the U.S. company reported weak figures and published a large write-off. "We have pulled out of the venture and have no losses in relation with our cooperation with Enron," an EWZ spokeswoman told Dow Jones Newswires. -By Goran Mijuk, Dow Jones Newswires; +41 1 211 70 1; goran.mijuk@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. US Power, Gas Markets Remain Orderly Despite Enron Exit By Dina O'Meara, Mark Golden and Andrew Dowell Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Trading in U.S. natural gas and electricity markets generally remained orderly Thursday, and price movements continued to be muted, despite the exit of one-time market leader Enron Corp. (ENE). Some gas markets, however, saw more volatility as a result of Enron's absence, traders said, and some electricity prices seemed stronger than justified by fundamentals, perhaps a result of buying by traders covering their exposure to Enron. The moves weren't dramatic. "It's almost business as usual," one power trader said. Enron wasn't presenting a full range of prices on its Internet-based platform EnronOnline Thursday, although traders said Enron was briefly making markets for some products. Traders, who for the most part aren't doing business with the company, attributed the activity to last-minute efforts by some energy companies to flatten their positions with Enron and the energy giant's own efforts to close its positions. "There's a lot of unwinding going on," a trader said. The New York Mercantile Exchange, the world's largest energy futures exchange, advised its floor members Thursday morning not to accept orders placed directly to the trading floor by Enron or Enron affiliates without written authorization from a clearing member carrying an Enron account. The exit of a company that once accounted for a quarter of the North American power and gas markets has produced substantial changes in the way business is done in the energy markets. Traders used to transacting on EnronOnline were spending more time on the phone or turning to platforms like that run by IntercontinentalExchange, an electronic marketplace founded by a consortium of energy and financial companies. Traders accustomed to looking to EnronOnline for pricing guidance were left to figure out the market for themselves. The result was abnormally high volatility in the physical gas markets, particularly on gas for delivery in the next month, a trader said. Gas for delivery in December at Southern California's Topak hub was trading in a range of $1.95 to $2.55 per million British thermal units, the trader said. December gas at the San Juan basin was trading at $1.70-$2.44. "Traders aren't sure where they should be trading," the trader said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. USA: Enron opens EOL trade system to unwind positions. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. SAN FRANCISCO, Nov 29 (Reuters) - Beleaguered energy giant Enron Corp. said on Thursday it had reopened its widely used electronic trading system to allow parties to unwind outstanding positions. The company also said it has no plans to permanently dismantle its EnronOnline (EOL) system, which until this month was by far the most liquid marketplace for trading North American electricity and natural gas. "EnronOnline is now available to our customers to transact only in order to provide a means to manage Enron credit exposure," a message posted on the trading system said. The message warned that "while transactions may be available, customers entering into transactions should carefully evaluate their positions and Enron's current credit status before transacting." Enron spokesman Eric Thode confirmed EnronOnline - which recently accounted for up to 60 percent of Enron's business - restarted operations late Wednesday. The internet-based EOL trading platform was shut earlier Wednesday after credit rating agencies cut Enron's debt to "junk" status. Thode also said the company had "no plans" to cease operations on EnronOnline after parties have closed all outstanding positions. The system also carries products for trading various commodities like metals, pulp and paper. Enron is teetering on the brink of bankruptcy after a rescue deal with its smaller rival, Dynegy Inc. , fell apart on Wednesday. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. GERMANY: German power jumpy, Cal 02 up on Enron crisis. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. FRANKFURT, Nov 29 (Reuters) - German electricity prices jumped around widely on Thursday, while Year 2002 firmed by up to 35 eurocents due to uncertainty over the value of long-term contracts with crisis-hit counterparty Enron . Enron's liquidity crisis reached a head on Thursday when the firm announced that its European arm had filed for creditor protection. "Prices were jumpy today, which was in part due to uncertainty with Enron," a trader said. "But Enron has actually been tapering off its volumes further out for a while now, so the market didn't really miss any big volumes from them today," he added. Day ahead baseload traded at 31.5-33 euros, with an early high of 35 euros and a mid-session low of 29.5 euros, while peakload traded at 39.75-42.25 euros, after peaking at 45 euros and troughing at 39.75 euros. Week ahead was rangebound at 29.75-31 euros, while peakload changed hands at 41.5-44 euros in quiet trading. December baseload traded at 27.6 euros, before retracing to its Wednesday range of 26.65-26.7 euros, while January baseload traded at 26.65-27.1, also steady with previous levels. Year 2002 firmed to 22.75 from 22.4 euros, before falling back down to 22.45 and last traded at 22.35-55. "This was all on speculation about Enron and on covering their long-term postions since delivery is now not guaranteed beyond Friday," a dealer said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. Europe Funds' Exposure To Enron Limited; Many Sold Early By Ellen Thalman Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) BERLIN -(Dow Jones)- While some European mutual funds may be stuck holding Enron Inc. (ENE) shares or bonds, their exposure appears fairly limited, with a number of fund companies saying they already sold off their holdings in recent months. Nevertheless, a few funds said they had some exposure in stock or bonds to the company, which stopped most trading Wednesday after Standard & Poor's downgraded its credit rating to "junk" and Dynegy Inc. (DYN) abandoned plans for a buyout. Fund manger Helle Bendorff with BG Invest in Copenhagen said at the end of October, BG Invest's international corporate bond fund had 6.1 million kroner, or 3.2%, invested in Enron corporate bonds, out of a total fund of DKK195 million ($1=DKK8.3652). "Naturally when something like this happens anyone can see it will take its toll on returns," said Bendorff. However, she wouldn't give further details. Enron's 4 3/8 bonds dated 2005 were trading around 20 cents to the dollar Thursday, down from over 50 cents before the buyout fell through. The collapse of the Dynegy deal leaves Enron bondholders holding about $13 billion in debt versus an unknown base of assets. Analysts widely expect Enron to file for insolvency protection, and its liquidation value will be the focus for bondholders. Bondholders are therefore more likely to get something back than investors who are left holding stocks. In contrast with U.S. counterparts, most European stock funds' exposure appears fairly low, however, and any hit to their value was probably already taken in the last months. Fund managers and spokespeople at a number of European fund houses that had been known to have holdings in Enron shares in the past said they sold off those assets in recent months and weeks. A spokesman at Dutch funds company OHRA Beleggingen Beheer BV said the fund sold its Enron holdings at the end of October. They had comprised around 4.7% of its EUR20 million New Energy Fund and were also included in some other funds, according to funds tracking company Morningstar. He said they took a loss on the investment, but stressed they still unwound their holdings on time. A fund manager at Denmark's Uni-invest said the firms electronic business unit trust had sold off its holdings in Enron prior to the current troubles. As of the end of September the unit trust had held 3.6% of its assets in Enron stock. The size of the unit trust is DKK585 million, the manager said. Dresdner Bank's DIT funds arm also sold off all its Enron holdings in its Energie Fonds after the company's third-quarter earnings report, a spokesman said, as did UBS' AG's EF-Energy fund. European energy funds tend to be rather small, so even if the fund is highly exposed, it's unlikely to have any market impact. The largest energy funds are only several hundred million euros, for example. In the U.S., the picture was somewhat different. Enron may have been held by some major U.S. funds, according to the funds' most recent Securities and Exchange Commission filings. Those include FMR Corp.'s (X.FIN) Fidelity Investments, Stilwell Financial Inc.'s (SV) Janus Capital Corp., Alliance Capital Management (AC) and Putnam Investments. Vanguard Group Inc. (X.VGI) held the stock in various portfolios, including its giant passively managed index funds, according to its filings. The $11 billion Alliance Premier Growth Fund had about 4% of its assets in Enron shares as of Sept. 30, according to Morningstar. Based on the Sept. 30 filing, the fund's stake had dropped in value by about $445 million through Wednesday. A spokeswoman for Janus said the company's Mercury Fund, which had 3.6% of its assets invested in Enron stock on April 30, had disposed of all its Enron shares by mid-November. Many of the stock funds in Europe that are still holding Enron funds als
|