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Europe counts Enron losses
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November 30, 2001: 4:13 a.m. ET
Abbey National could lose $164 million as Enron teeters on the brink of collapse
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LONDON (CNN) - Abbey National, the UK's second-largest mortgage lender, joined the long list of European companies left counting the cost of Enron's possible demise.
The bank said on Friday its exposure to U.S. energy trading group Enron was £115 million ($164 million) and it would set aside about £95 million to cover the loss.
Enron (ENE: down $0.25 to $0.36, Research, Estimates) is expected to file for bankruptcy after a rescue bid by Dynegy (DYN: down $2.24 to $33.65, Research, Estimates) fell apart. If the company does go under it will become the biggest corporate collapse in U.S. history.
Over the last couple of months European utilities have cut back on their dealings with the U.S. company.
Enron took advantage of the deregulating global energy markets, raising money for expansion on the back of its soaring stock price. But its share price lost nearly all its value after a series of disclosures of irregularities in its finances, including the admission that it erred on financial statements and had to lower its earnings reported since 1997 by almost $600 million.
At the peak of its dominance, Enron was trading with about 300 companies, ranging from multinationals to local utilities.
Centrica, Britain's largest gas supplier, said on Thursday it could lose £30 million on forward trading contracts if Enron defaults.
German RWE's energy trading unit said it could face losses of between  10 million and 11 million ($9.77 million).
French oil giant TotalFinaElf (PFP)said its exposure was limited to about $25 million while German utility E.ON and multinationals BP (BP-) and Shell (SHELL) declined to comment.
Industrial sources told Reuters, BP could lose "a couple of tens of million dollars."
Still, European banking losses pale into comparison with the problem faced by Enron's creditors. J.P. Morgan Chase, which advised Enron on the Dynegy takeover, has about $500 million in unsecured debt and an additional $400 million in loans.
Citigroup, which also acted as adviser, has from $700 million to $1 billion in debt with half unsecured, a source told CNN.
Dutch bank ABN Amro has declined to comment on its possible losses. The bank was part of an international syndicate that loaned up to $3 billion to Enron's Indian project.
German bank Commerzbank (FCBK) said its losses would be in the "low double-digit million dollar amount." Deutsche Bank (FDBK), Europe's biggest bank, faces a maximum loss of tens of millions of dollars.
UK utility Powergen faces some exposure to Enron but added it was "not material" while another British firm Scottish Power said it had stopped trading with Enron several weeks ago and had no exposure to the company.
Belgian utility Electrabel and energy group Tractebel said the demise of Enron would have little impact on their business, adding they had been taking measures for over a month to reduce their positions with Enron. 
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