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. Last Updated: 07/27/2016

UBS Warburg Wins Auction For Energy-Trading Business

NEW YORK -- Enron Corp. selected investment bank UBS Warburg as the winning bidder for its wholesale energy-trading operation Friday following a private auction presided over by a bankruptcy court.

Terms were not disclosed. Enron lawyer Martin Bienenstock said details would be made public Monday morning.

Bienenstock called the decision to sell to New York-based UBS Warburg, a subsidiary of Switzerland's UBS AG, a "very positive development" in Enron's effort to reorganize under bankruptcy protection.

The energy trading unit, Enron's most important business "was something that was dead that we were trying to bring back to life," Bienenstock said.

Negotiators had worked out terms after a marathon session that began Thursday and lasted until 11 a.m. Friday -- an hour before the hearing before Judge Arthur Gonzalez at U.S. Bankruptcy Court in Manhattan. Details were still being finalized and officials had not had time to put together all the documentation spelling out the agreement, Bienenstock said.

Luc Despins, the head lawyer a committee of Enron creditors, said the auction process was "an extremely competitive process" and that members of the committee support the selection of UBS Warburg.

But other Enron creditors were questioning the deal. Tom Lauria, a lawyer representing energy companies that are Enron creditors, said his clients wanted more information over the weekend about how the deal was reached and how the proceeds will be allocated.

Gonzalez scheduled a hearing for Thursday to announce whether he will approve or deny the sale.