Enron Unveils Survival Plan

Enron, the bankrupt energy firm, yesterday presented its plan for survival as a stripped down company with power and pipeline assets across North, South and Central America.

The Houston-based business presented the 42-page blueprint to a committee of creditors in the hope of persuading them that it will have more value as an ongoing operation.

The business, which became the biggest ever bankruptcy in December, would have 15,000 miles of pipeline assets, 75,000 miles of distribution and 6,700 megawatts of power generation. The company, once the seventh largest in the US, would employ just 12,000 people.

The company's creditors need to approve the plan before it is sent to the bankruptcy court to rubber-stamp.

The business would be separated from Enron's liabilities. The creditors could then take shares in the new company, tentatively named OpCo Energy Company. It is estimated that OpCo would have $10.8bn in assets and core earnings of $1.3bn during 2003.

Arthur Andersen, the accounting firm brought down by Enron's collapse, will be in court on Monday fighting for its survival against federal prosecutors.

Andersen is facing trial after failing to agree a settlement with the US Justice Department that would have seen it admitting responsibility for shredding Enron documents during an investigation.