Despite this setback, Enron said it would still pursue a $US10 billion damage suit against its onetime merger partner. In November of last year, Dynegy Inc terminated an agreement to acquire Enron, which resulted in the troubled energy trader filing the biggest bankruptcy in US corporate history.
Prior to this settlement, Dynegy had repeatedly argued it had the right to acquire the pipeline even if the merger fell apart. As part of the planned combination, Dynegy provided Enron with $US1.5 billion last November in return for a right to acquire the pipeline, which stretches from Texas to the Great Lakes, for an additional $US23 million.
When the merger fell apart and Enron refused to hand over the pipeline company, Dynegy filed a suit in the Houston State court. Enron's agreement to transfer the NNG pipeline has resulted in the settlement of the suit.
