Andrew Fastow, the 39-year-old former CFO for Enron Corp. who has become a central figure in the company’s dubious off-balance sheet transactions and earnings discrepancies that precipitated a stunning bankruptcy in six weeks time, held a telecast press conference from his attorney’s office in New York City, to quell rumors that he was “missing in action.” However, Fastow was there in body only, with his high-powered attorney, David Boies, doing most of the talking.

Boies, managing partner of Boies, Schiller & Flexner, became famous to the public last year as the attorney who represented former Vice President Al Gore in the Florida recount vote following the presidential election. Fastow, who has most recently captured the public imagination as the supposed mastermind behind Enron’s related party transactions, said only a few words during the conference and was never allowed to answer any questions. In fact, Boies said that the press conference was called mostly to reassure the public that recent news stories suggesting Fastow had fled the country or would not cooperate with authorities in the Enron investigation were untrue.

(One possible reason for Fastow’s low profile since his ouster from Enron in late October was pointed up in Business Week in its Dec. 17th cover story on former Enron CEO Jeff Skilling. The weekly magazine reported Fastow has received death threats and been the target of malicious and threatening comments in online chat rooms.)

“In fact,” said Boies, “Mr. Fastow was here and had made plans to be working with his attorney.” Boies declined to respond when asked where Fastow had been for the past two weeks, but denied speculation that Fastow would not cooperate with an ongoing Securities and Exchange Commission (SEC) investigation (see related story).

At some point in the future, Boies promised that Fastow “will be responding to a variety of questions” for federal authorities, but he noted that the press conference was not the time to “tell his side of the story.” Said Boies, “We told the SEC we would be happy to present Mr. Fastow, however, we were not going to be able to turn him over in 48 hours and asked them to negotiate a mutually agreeable date.” Boies said he expects the SEC to “negotiate a little,” warning that his client would need more than 48 hours to meet with investigators unless the matter was urgent.

When asked whether Fastow was upset about Enron’s bankruptcy or the massive layoffs, Boies said, “Mr. Fastow, I’m sure, is very unhappy. Everybody is. He is going to talk. This is an unhappy time… It’s always complicated to have a press conference like this…, bring somebody in and not let them answer questions.” Boies noted that an “awful lot of people were requesting information,” but said it was too early to respond. However, Boies said, “he is going to be available.”

Prodded by the press to say anything, Boies did allow his muted client to tell the crowd “hello,” then he wished everyone a “happy holiday season” and thanked them for coming.

Fastow’s legal representation, Boies, Schiller & Flexner, has about 100 lawyers, with offices in California, Florida, New Hampshire, New York and Washington, DC. Commercial litigation and international arbitration are the “centerpieces of the firm’s practice.” The firm also represents corporate clients and financial institutions in significant merger and acquisition and project financing transactions.

The law firm has a “business crimes” practice, which defends individuals and corporations in investigations and trials. Past cases have included United States v. Spano (bank fraud by former owner of New York Islanders); United States v. Lauersen (insurance fraud by fertility doctors); United States v. Carucci (New York Stock Exchange floor broker case); and United States v. Gaito (securities fraud by accountant). Clients include Arthur Andersen (Enron’s accountant), CBS, Credit Suisse First Boston, Columbia University, DuPont, the French government and the New York Yankees. It represents both plaintiffs and defendants.

In other news Wednesday, Enron CFO Jeffrey McMahon, appointed in October after Fastow was fired, told a group of Enron creditors meeting in New York that the company expects to emerge from bankruptcy within a year. He announced the company plans to sell its energy trading unit and other assets to raise up to $6 billion. A plan was expected to be presented as soon as Wednesday night to a creditors’ committee. The creditors’ committee would be appointed by the U.S. bankruptcy court in Manhattan with decisions approved by presiding Judge Arthur Gonzalez.

Assets now scheduled for sale include its troubled water unit, Azurix Corp., Enron Wind and its emerging markets businesses. It plans to retain its exploration and production unit, wholesale and retail services and regulated businesses.

Enron apparently is already in advanced talks to sell a controlling stake in its core energy trading unit to a financial backer, which could be either J. P. Morgan Chase & Co., Citicorp or UBS Warburg. All have been rumored to be in the market for some of Enron’s assets. J.P. Morgan, which sued Enron on Monday, and Citicorp, are two of Enron’s largest creditors.

One asset sale was revealed Wednesday. Enron will pick up $68 million for its one-third ownership share of Trailblazer Pipeline, according to Kinder Morgan Energy Partners L.P., which announced it has a definitive agreement to round out its ownership of the pipeline to 100% (see related story).

Enron Chairman and CEO Kenneth Lay attended the New York meeting with McMahon, and said he had instructed his advisers to complete the bankruptcy within a year’s time. “I regret that we’re all here today for the purpose of what we’re here for, but we are,” he said.

According to Enron’s legal team, the bankrupt company currently has $15 billion in bank debt, with only $2 billion of it secured. It also has $15 billion of bond debt and another $13 billion in trade debt, of which $8 billion is for derivatives and $5 billion is to banks and for bonds; and surety debt related to contract delivery of $2.5 billion.

Former merger partner Dynegy Inc. added to the news on Wednesday, amending its filing to gain control of Enron subsidiary Northern Natural Gas Co. In the amended lawsuit filed in the 333rd Judicial District of Harris County Court in Houston, Dynegy claimed that Northern Natural defaulted under a credit agreement with two New York banks and other lenders. As part of its merger agreement, Dynegy invested $1.5 billion into Enron in exchange for becoming a preferred Northern Natural Gas shareholder. Following the bankruptcy filing, Enron claimed that Dynegy had no right to the pipeline company.

The amended lawsuit claims that on Dec. 5, Enron’s bank consortium, composed of Citicorp North America and J.P. Morgan Chase & Co., notified Dynegy that an Event of Default had occurred under a credit agreement executed by Northern Natural. The default, claims Dynegy, is a “trigger event” for the original agreement that involved Dynegy, the banks and CGNN Holding and MCTJ Holding, the two holding companies that control Northern Natural. Earlier this week, Dynegy notified CGNN that it would elect to exercise its rights to acquire the pipeline.

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