Enron proposes plan for new company

Bankrupt Enron Corp. last night proposed remaking itself as a smaller power and pipeline company, a move welcomed by creditors…

Bankrupt Enron Corp. last night proposed remaking itself as a smaller power and pipeline company, a move welcomed by creditors who reviewed an early draft of the plan, the company said.

Under the proposal, Houston-based Enron would retain pipelines, power plants, and distribution networks in North, Central and South America, while selling European and Asian assets under bankruptcy proceedings.

It would also keep Portland General Electric, throwing doubt on a proposed sale of that utility to Northwest Natural Gas Co.

"I think (creditors) were pleased with the progress that has been made to date," said Stephen Cooper, Enron's interim chief executive and restructuring officer. "I think that they were open to proposals that we made today...and to working hand-to-hand with us."

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Luc Despins, an attorney for the creditors committee, said the committee will consider Enron's proposal for "many weeks" before taking a position.

The proposed company - called OpCo Energy Company - would include gas transmission networks, a major utility in Oregon, and a workforce of about 12,000 employees, down from Enron's current staff of 23,000. Enron said the plan would not result in massive layoffs since many jobs would be moved to acquiring companies once units get sold.