Enron Credit has virtually shut down in the wake of the agreement by Dynegy to acquire its parent Enron, according to an official at the firm in London. The team has all but stopped trading because counterparties are wary of taking on additional exposure to the company, particularly because of uncertainty about the future role of Enron Credit within the merged entity. Dynegy has stated it wants to concentrate on Enron's core businesses and market professionals said it is unlikely Enron Credit would meet that description. Alex Parsons, a spokesman at Enron in London, did not return calls by press time.
In a move that seemed to underline these concerns, Bryan Seyfried, global head of Enron Credit in London, pulled out of delivering a presentation on credit-risk management at an industry conference Friday. A colleague explained Seyfried felt it was inappropriate to give a presentation given the uncertainty at Enron. Prior to Dynegy's agreement to buy Enron, credit derivatives pros in London said they had slashed exposures or were avoiding trading with Enron completely because of problems at the parent company level (DW, 11/5). Reached on Thursday, Seyfried declined to comment on the likely future of the business.
