Enron DIP Could Be Cut

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Enron DIP Could Be Cut

J.P. Morgan and Citibank's record debtor-in-possession facility for Enron may not need to be quite so large as $1.5 billion, according to bankers familiar with the situation. Enron is in a good cash position and has not drawn down on the $250 million made available when the bankruptcy filing was made, said one source. Other sources said banks' reluctance to commit is the real reason for the potential reduction, in light of the dwindling asset base and banks concerns over exposure. J.P. Morgan spokesman Adam Castellani declined comment. The DIP is set to be syndicated Jan. 30, once a court ruling is decided. Officials at Enron did not return calls.

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