The Financial Express February 26, 2002
Enron Japan’s Creditors May Be Left Disappointed Singapore, February 25: Creditors to Enron’s Japanese units could be left in the cold as the company’s assets may cover little more than the cost of liquidation, a source said on Monday. Creditors will meet with the administrator of Enron assets on March 27 to find out what, if any, money will be repaid, a source involved in the liquidation process said from Tokyo. “After that meeting the distribution of the assets to creditors would occur, if there are any. But the prospects are not great. There are not many assets,” the source said. Creditors to Enron Japan Corp are seeking around three billion yen, the source said. Enron Japan and three other Japanese affiliates of the former US energy giant filed for bankruptcy in early December, one week after the parent company filed for largest bankruptcy in US history. The company’s 70-to-80 employees have one month’s salary, or about 60 to 70 million yen coming to them. “The employee claims for salary and bonuses take first priority,” the source said. Enron’s Japanese assets consist of mostly office equipment and a modest bank deposit, with the value of the company’s office lease worth little more than the cost of termination, the source said. “The costs to close the office could exceed the overall assets,” the source said. The value of Enron Japan’s assets will be revealed at the creditors meeting. The source said Enron’s Japanese trading system cost about two billion yen to build, but cannot be sold to generate cash. “The trading system can’t be sold because it is based on the US system, and they have not given their approval for its sale here in Japan,” the source said. Enron established a foothold in Japan in 1999 and operated various trading and marketing units in the energy and commodities industries. The company had announced plans to build large thermal power plants at four different sites in Japan. — Reuters © 2002: Indian Express Newspapers (Bombay) Ltd. All rights reserved throughout the world.
