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Last Updated: Friday, 10 September, 2004, 19:45 GMT 20:45 UK
Enron gets go ahead to sell pipes
Enron logo
Enron's fall shocked America
Failed US energy giant Enron has been given permission to sell its most prized remaining asset - its natural gas pipeline arm CrossCountry Energy.

A US federal bankruptcy judge on Friday approved Enron's agreement to see the US pipelines for $2bn (1.6bn) to consortium CCE Holdings.

Enron chose the CCE offer last week in a closed-door auction, and the sale is expected to be completed by December.

CCE is a joint venture of Southern Union and Commercial Finance Energy.

Corporate scandal

Enron is also to sell another subsidiary business - Portland General Electric - leaving it with just one company - Prisma Energy International - which has small-scale pipeline and power assets in 14 countries.

Assuming all the sales are successful, Enron's creditors will eventually get about $12bn - 92% in cash and 8% in Prisma shares. Shareholders will get nothing and the Enron name is likely to disappear.

Enron's collapse into bankruptcy in the wake of a false accounting scandal stunned corporate America.




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