Tuesday, December 4, 2001

‘DPC a separate legal entity’

MUMBAI, Dec 3 (PTI)

Embattled US energy major Enron's Dabhol Power Company (DPC) today said “it functions independently of Enron Corp” and was a separate legal entity in which the multinational is one of the four shareholders.
“DPC is an Indian company with a separate legal entity and Enron is one of the four independent shareholders from India and the US. Therefore, it functions independently of Enron Corp,” the company spokesperson said in a statement here today.
He said DPC was currently reviewing its $3 billion project in Maharashtra to determine how to proceed further to resolve its dispute (with Maharashtra State Electricity Board and Indian financial institutions).
Meanwhile, the Industrial Development Bank of India led financial institutions are mulling over a possibility to approach the bankruptcy judge in the US following Enron Corp's filing for bankruptcy under Chapter 11 under US laws.
“Following Enron's filing for bankruptcy, we are studying this very chapter 11 and trying to figure out a possibility of recovering our amount,” a senior FI official said.
He said Indian FIs need not panic as DPC's loans were pledged to the lenders and were covered with a security of mortgage.