Enron has requested yet another extension to filing its reorganization plan, according to papers filed this week in the U.S. Bankruptcy Court for the Southern District of New York. Enron, which has requested and received three extensions already, was given until April 30, but has asked for an extension to June 30.

Judge Arthur J. Gonzalez, who is presiding over the case, has approved the previous extensions, but he had indicated in February that his patience with the delays was wearing thin (see Daily GPI, Feb. 24). Enron also requested Monday that besides the two-month extension, it wants an extension to have the plan approved by the debtor committee to Nov. 29.

Since the last court hearing before Gonzalez in February to extend the proposed Chapter 11 filing, Enron attorneys noted that “dramatic changes have occurred in Enron’s cases and significant progress has been achieved.” In consultation with its Creditors’ Committee, the company had determined that “it is in the best interests of the estate and creditors for Enron to retain its core businesses for the time being. This is an important shift away from a plan that contemplated distributing sale proceeds to Enron’s creditors toward a plan that takes into account the retention of the core businesses.”

The motion continued, “Enron has never been a liquidation case in the sense of selling assets and dismembering businesses or terminating businesses with large losses of jobs. But now, neither is Enron marching toward the sale of its core businesses as going concerns.” Enron said that the new plan now being formulated would give creditors ownership of core businesses “well positioned for the future,” proceeds from non-core assets, and entitlements to legal proceeds.

In supplemental court papers filed Tuesday, Enron reiterated that it intends to keep most of its remaining core assets. It “recently determined after a substantial marketing process that retention of Enron’s core businesses is preferable to their current sale for the time being, and this results in certain important changes to the Chapter 11 plan preparation,” according to a motion filed by Enron’s law firm Weil, Gotshal & Manges LLP.

The Tuesday motion, which supplemented a 22-page motion filed a day earlier, noted that “some interested persons have inquired as to whether some of Enron’s core businesses, and especially Portland General Electric (PGE) may still be sold. The answer is ‘yes.’ ” Enron is continuing with its previously announced auction process to sell its interests in many of its major assets, including PGE, Eco-Electrica, Compaignie Papiers Stadacona and the Sithe/Independents Power Partners, according to the motion. It also “continues to consider its alternatives” regarding independent producer affiliate Mariner.

“Enron, however, continues to reserve the right not to sell any such assets if Enron would not receive more value than Enron and the [creditors’] committee believe they obtain by retaining any asset,” the motion said. Its proposed Chapter 11 plan “will incorporate flexibility to enable the sale or retention of any individual or combination of businesses at any time if such transactions are in the best interests of Enron’s estates and creditors.”

The court papers indicated that Enron is handling more than 23,000 claims in the Chapter 11 cases, of which 5,000 are contingent or unliquidated claims that have to be estimated. In addition, Enron said it is continuing to resolve almost 2,000 remaining non-debtor entities by either beginning Chapter 11 cases or dissolving entities.

The bankrupt company also said it was “prosecuting or about to prosecute multiple actions, including actions involving the wholesale and retain trading business, major avoidance actions, potential actions against various financial institutions and other actions to maximize the debtors’ estates.”

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