Enron Corp. issued another revised creditor plan to the bankruptcy court overseeing its case on Monday, noting that it now expects to increase the amount of money for unsecured creditors to receive when it exits Chapter 11 bankruptcy court protection. The revised figures were included in court documents submitted to the U.S. Bankruptcy Court for the Southern District of New York on Monday.

The Houston-based company unveiled its reorganization plan in July (see Daily GPI, July 14). Under that plan, most of the creditors were expected to receive between 14.8 and 18.3 cents on the dollar, representing about 78% of the total amount Enron owes to various creditors. With confirmation, all of Enron’s unsecured creditors would receive 70% of their claims in cash and 30% in stock in the spun-off companies. However, it raised creditor recoveries for its largest entities, Enron, Enron North America Corp. and Enron Power Marketing Inc., in September and November revisions.

Under the latest plan, unsecured creditors of the parent company Enron will receive 17.4% of the total amount they are owed. The November filing showed creditors would receive 17.2% in November, while the September filing was 16.6%. Enron North America creditors are expected to recover 20.1%, which is up from 19.8% in November, 19.5% in September and 18.3%, which was forecast in the July filing. Enron Power Marketing creditors would now receive 22.9%, which is slightly more than the 22.6% listed in November, 22.5% in September and 21.3% last July.

Because Enron has agreed to sell its utility, Portland General Electric Co. (PGE), the court documents do not detail how much of the creditors’s recoveries now will be in cash and in equity. According to the revised documents, the creditors for Enron’s remaining three surviving entities, which include PGE, would receive about two-thirds in cash with the rest in shares of the surviving entities.

Other than the PGE sale, which had been expected for months, the remaining plan mirrors the one presented in July to the court. If the PGE sale is completed, Enron plans to emerge from bankruptcy with two entities: CrossCountry Energy Corp., which has stakes in three North American natural gas pipelines and Prisma Energy International Inc., which would own 19 international electricity and pipeline assets.

A disclosure-statement hearing begins next week for Enron. In this hearing, now set for Jan. 6, U.S. Bankruptcy Judge Arthur J. Gonzalez will be asked to decide whether Enron has adequately described the terms of its reorganization plan, including telling creditors how much they will recover, in its disclosure statement. If the statement is approved, Enron will be one step closer to emerging from its two-year-old bankruptcy.

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