Dynegy Gains Natural Gas Pipeline From Enron
Dynegy had invested $1.5 billion in Enron’s pipeline subsidiary with the option to purchase it. When its proposed merger with Enron fell apart, Enron financially collapsed and declared bankruptcy. The two companies then proceeded to sue each other over the collapse.
This pipeline agreement, however, could be challenged by Enron’s creditors, because it eliminates a major asset that could be used to pay off its debts.
Called the Northern Natural Gas Pipeline, it provides approximately 8% of U.S. output, supplying 4.3 billion cu ft of gas on a daily basis. The pipeline extends more than 16,000 miles from Texas to the Canadian border.
Publication date: 01/07/2002