HOUSTON - Enron Corp. announced late Wednesday that it has reached an agreement to sell the wind turbine manufacturing assets of Enron Wind Corp., its wind power subsidiary, to the Power Systems business of General Electric Company.
Enron Wind is a global wind power company with leading technology and a strong position in the three countries with the largest demand for wind power: the U.S., Germany and Spain. Enron Wind operates manufacturing facilities in these three countries and in the Netherlands and maintains eleven sales offices in countries around the world.
"While Enron Wind has historically been a good business with solid returns, its future growth requires more capital than we can justify under current circumstances," said Stanley Horton, chairman and CEO of Enron Global Services, which includes Enron Wind. "The proceeds of this sale will help to repay our creditors. I am confident that the wind company will be a good business for GE."
The purchase includes the company's global wind turbine manufacturing and marketing operations, but does not affect Enron owned or operated wind farms. GE will continue to provide operational support for most of these facilities.
The local effect should not be too evident, according to company officials. Enron will continue to operate the windfarm located in western Buena Vista County. Enron Wind does not directly own that operation, but is under contract to operate it.
In connection with the sale, Enron Wind will concurrently file a voluntary petition for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. Subject to necessary bankruptcy court and regulatory approvals, the transaction is expected to close in the second quarter of 2002.
Credit Suisse First Boston and The Blackstone Group advised Enron Wind Corp. and Enron Corp. on this transaction.
Enron Corp. delivers energy, physical commodities and other energy services to customers around the world. Enron's Internet address is www.enron.com
Look for more in Saturday's Pilot-Tribune.