Credit Suisse First Boston is said to be offering Texas Pacific Group 's newly formed Oregon Electric Utility Co. $1.15 billion in debt financing to back the $2.35 billion bid for Enron 's Portland General Electric utility. Spokesmen for TPG and CSFB declined comment. Oregon Electric will assume $1.1 billion in debt and preferred stock. Proceeds from the sale will be used to help pay Enron's creditors, who are owed more than $67 billion. The sale is subject to better offers at auction and bankruptcy court approval.
Enron bought Portland General for $3 billion in July 1997 and twice failed to sell the utility. A $3.1 billion deal with Sierra Pacific Resources was canceled in April 2001 when the companies agreed that the California energy crisis made it too hard to win approval. In May 2002, Enron agreed to terminate a $2.98 billion sale to Northwest Mutual Gas Co. after Enron's stock became essentially worthless following its bankruptcy filing. A spokesperson for Portland General Electric referred calls to Oregon Electric Utility Company. Calls to Oregon Electric Utility Company were not returned.