SEC approves Enron's reorganization plan, which will create two independent companies

HOUSTON — The Securities and Exchange Commission has approved Enron Corp.'s plan to emerge from bankruptcy, the company said Wednesday in a regulatory filing.

Under the plan, which was announced a year ago, Enron would emerge from Chapter 11 as two independent companies with different names. The domestic company, CrossCountry Energy Corp., will comprise Enron's whole or part interest in three North American natural gas pipelines. The second, Prisma Energy International Inc., will comprise Enron's interests in international pipeline and power operations, most of which are in Latin America.

The SEC approval authorizes Enron to continue making necessary transactions to finalize formation of the new companies. A hearing for U.S. Bankruptcy Judge Arthur Gonzalez to confirm the plan is scheduled for April 20 in New York.

However, the agency's approval does not extend to the pending sale of Enron's Pacific Northwest utility, Portland General Electric.

Gonzalez last month approved the sale to a holding company backed by investment funds managed by Texas Pacific Group, including the Oregon Public Employees Retirement Fund. The holding company, Oregon Electric Utility Co. LLC, will pay $1.25 billion in cash and assume $1.1 billion in debt in the deal slated to close later this year pending approvals.

The Portland General sale will require separate approval from the SEC under the Public Utility Holding Company Act, Enron said in a Wednesday filing with the SEC.