Byline: Jonathan Berke
A proposed sale of one of EOTT Energy Partners LP's assets is delaying a judge's decision on whether to confirm the oil company's reorganization plan.
Enron Corp. wants to sell EOTT Liquids, a subsidiary of EOTT Energy. But the proposed sale would reduce the value of a reorganized EOTT Energy, which at one time was an Enron unit.
Since EOTT Energy's unsecured creditors would get 97% of the reorganized company, a sale of EOTT Liquid could reduce their share value.
"Its a fundamental problem when they fail to make this kind of disclosure," said the creditors' lawyer, Steven Lemmon of Austin,Texas-based Brown McCarroll …