Houston, May 10: Enron Corp announced plans to cluster 19 international power and pipeline assets in a new company as part of its chapter 11 reorganisation, ending efforts to sell the businesses after they did not draw satisfactory bids. The company, temporarily dubbed "International Co.," is one of two in which creditors will have shares when Enron`s massive bankruptcy wraps up. Most of the assets are in South and Central America, including a Brazilian power plant used in a sham sale to pump up profits at the energy company.

Enron, which filed for bankruptcy in 2001 amid massive accounting fraud, began seeking bids on its North American pipeline assets and international holdings last year. Enron spokesman Eric Thode said the offers the company received were too low. "Certainly none of the bids reached a point where it was in the best interests of the estate and our creditors to accept," Thode said.

Enron said the company would have an independent board of directors and would be insulated from liabilities associated with the bankruptcy. The second company, known for now as "Pipeco.," will include Enron`s all or part interest in three North American natural gas pipelines. Both have the blessing of major creditors and need approval from US bankruptcy Judge Arthur Gonzalez in New York , who is overseeing the chapter 11 case.

"That makes a lot of sense, as a business decision," said Anthony Sabino, a St John`s University professor specialising in energy and bankruptcy law. "If you`re going to segregate assets, you might as well do it on national boundaries." Bureau Report