EOTT Energy emerges from Chapter 11

By Carlise Newman

Chicago, March 3 - EOTT Energy Partners LP announced Monday it successfully emerged from Chapter 11 bankruptcy effective March 1.

Under the terms of the reorganization plan, EOTT Energy emerges from bankruptcy as a new entity, EOTT Energy LLC, which will be the owner of the limited partnerships through which EOTT Energy's business is conducted.

The reorganization plan provides for a significant reduction in debt, restructuring of finances and a complete separation from Enron Corp.

The reduction in long-term debt and other liabilities was achieved through a restructuring of the senior notes and elimination of certain payables to Enron Corp. The senior noteholders also receive equity in the new entity in exchange for debt.

Credit facilities and term debt totaling $575 million previously available during the bankruptcy have been renewed with an 18 month maturity apart from inventory and receivables financing which runs for six months with an option to extend for a further 12 months. The facilities cover $325 million for letters of credit and up to $250 million of loans.

As previously announced, the plan includes the cancellation of EOTT's previously publicly traded units and the issuance of new equity units in EOTT Energy LLC on a 50-to-1 old-for-new equity unit ratio. The holders of previously publicly traded units will receive 3% of the newly issued units and warrants to purchase an additional 7% of the company's new equity units at $12.50 per unit.

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