Southaven Power granted court OK to sell stock in former Enron unit

By Jennifer Lanning Drey

Eugene, Ore., Sept. 27 - Southaven Power, LLC obtained court approval to sell shares of former Enron Corp. subsidiary Portland General Electric Co. that were distributed to Southaven under Enron's plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Western District of North Carolina.

Southaven said in its motion requesting the approval that proceeds from the stock sale will be used to repay outstanding portions of its debtor-in-possession facility, which will save the company interest.

Southaven also said in the motion that, to date, it has received 29,994 shares of Portland General Electric stock, with a value of $764,847, using the $25.50 Aug. 31 closing price.

The company obtained the stock under a settlement agreement in July 2005 that resolved its claims against Enron and EPC Estate Services, Inc.

Under the settlement, Southaven received a $27.92 million general unsecured claim against both Enron and EPC under Enron's plan of reorganization.

Those claims entitled Southaven to a distribution of common stock in Portland General Electric.

Southaven Power, an energy and transportation company based in Southaven, Miss., filed for bankruptcy on May 20, 2005. Its Chapter 11 case number is 05-32141.

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