Enron Enters into Settlement on Dispute with Dynegy
Enron Corp. (Houston, TX) announced that it had entered into a settlement of a dispute that has been the subject of litigation in Texas regarding Dynegy Inc.'s (Houston, TX) exercise of its option to acquire Enron's Northern Natural Gas Pipeline business. Under the settlement agreement, Dynegy will exercise the option and assume control of the pipeline. Also, Dynegy will dismiss its Texas lawsuit, extend Enron's right to repurchase the pipeline until June 30, 2002, and pay Enron $23.0 million pursuant to the original terms of the option agreement upon closing, subject to adjustment.
Enron will continue to pursue its separate lawsuit against Dynegy seeking $10.0 billion in damages arising out of Dynegy's termination of its merger agreement with Enron, and amend that complaint to add an additional damage claim alleging that Dynegy's exercise of the Northern Natural Gas Pipeline option was wrongful.