Enron, the collapsed US energy trader, today released the details of the sale of its trading arm to UBS, the Swiss banking group.
UBS is to pay one third of the trading arm's profits over the next 10 years to Enron, but Enron will not have an equity stake in the venture.
UBS will not become a successor to any Enron party and Enron will return uncashed the deposit of $25 million paid by the bank once the deal is closed. The closing date will be the day after the bankruptcy court of the southern district of New York approves the deal and writes it into the Chapter 11 bankruptcy order.
The two parties will file the necessary application with the US Federal Trade Commission within the next five working days. Either party may terminate the agreement if it has not been closed within 60 days.
The business that UBS is acquiring includes Enron's trading, marketing and market making activities in natural gas and electricity, including gas and physical power delivery obligations and positions in the derivatives markets for those commodities.
UBS will license from Enron intellectual property related to the business, receive IT support, lease office space and employ an undefined number of staff.
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