Court limits Sierra Pacific collateral
April 12, 2004
The Bankruptcy Court of the Southern District of New York last week authorized an agreement reached between Sierra Pacific’s two electric utilities and Enron regarding additional cash collateral to be placed into escrow pending an appeal of the court’s previous decision involving the companies’ dispute over power contracts.
In a hearing before Judge Arthur Gonzalez, an agreement was reached under which an additional $25 million will be placed into escrow, and Enron will request no additional cash until the current appeal process involving the dispute over $336 million in terminated power contracts
Enron and Sierra Pacific’s electric utilities, Nevada Power Co.
and Sierra Pacific Power Co., have agreed to seek expedited treatment of the appeal that is currently before the U.S.
District Court for the Southern District of New York.