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Enron gets $1B financing
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November 1, 2001: 11:25 a.m. ET
Troubled energy firm secures financing from J.P. Morgan and Salomon.
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NEW YORK (CNNmoney) - Enron Corp. secured $1 billion in financing Thursday from J.P. Morgan and Salomon Smith Barney.
The troubled energy company is using its assets, Northern Natural Gas Co. and Transwestern Pipeline Co., to support the credit lines. The financing will supplement short-term liquidity and refinance maturing obligations, the company said.
The commitments are subject to customary terms and conditions, including final due diligence.
"This is yet another step in our efforts to enhance market and investor confidence," Enron Chief Financial Officer Jeffrey McMahon said. "We are moving aggressively to strengthen our balance sheet and maintain our investment grade credit rating."
While rebounding Wednesday, shares of Enron (ENE: down $1.03 to $12.87, Research, Estimates) plunged a further 11 percent late Thursday morning.
The additional funds come a day after Houston-based Enron revealed that it is under formal investigation by the Securities and Exchange Commission.
Last week, Enron replaced its then-chief financial officer, Andrew Fastow, who has been linked to transactions involving two partnerships organized by Fastow. 
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