Responding to creditor’s concerns, Enron’s bankruptcy court judge has granted a request for the appointment of an examiner to monitor cash flow at Enron North America. Judge Arthur J. Gonzalez appeased creditors by approving the installation of an examiner, but refused their demands that Enron N.A. be allowed to control its own finances.

The creditors said they were concerned that Enron Corp. might be improperly dispersing cash proceeds from Enron N.A.’s former energy trading operations to other Enron subsidiaries, some of which have not declared bankruptcy.

The creditors estimated that Enron N.A. could have access to as much as $8 billion from the cancellation of energy contracts effected before UBS Warburg took over trading operations.

Enron Corp. has said it has kept careful records of money spent since the bankruptcy filing Dec. 2, 2001, and will be able to pay back any funds owed to the Enron N.A. account from asset sales. Enron is running a central cash management system, putting about $580 million of Enron N.A. funds into the central account and paying about $257 million back to the unit to pay bills, according to a Dow Jones report. Currently Enron owes Enron N.A. about $323 million.

The judge placed restrictions on borrowing by non-bankrupt units and said that any money Enron borrows from Enron N.A. in the future will be subject to interest. The trading subsidiary also will get a privileged place in the payback line, right behind the creditors for the debtor-in-possession financing.

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