Creditors are concerned Enron may be worth less than they thought, analysts say. That means they're likely to end up with a fraction of the more than US$40 billion they're owed.
Enron, which was once the largest energy trader, earmarked about US$8 billion worth of assets and businesses to sell to raise money for creditors. Last week, it sold a controlling interest in its dormant energy trading business to UBS AG. UBS agreed to pay Enron out of the unit's future profits, rather than provide any cash up front.
On Wednesday, BG Group Plc of the UK agreed to pay US$350 million for Enron's stakes in oil and gas fields in India.
A group of creditors led by Wiser Oil has asked the bankruptcy judge to appoint a trustee to run Enron's North American operations.
Creditors can ask a bankruptcy judge to name a trustee to run a bankrupt company in lieu of the chief executive officer and the board of directors, experts say. To oust management and have a trustee appointed, creditors must show management has been incompetent or committed fraud, said Patrick A. Murphy, a lawyer with San Franciso's Murphy Shenemen Julian & Rogers.
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