Dynegy Inc., which claimed a major Enron Corp. pipeline after their failed merger attempt last year, warns it might follow its rival into bankruptcy protection if a pending sale of that pipeline snags.
The firm expects the planned $928-million sale of Northern Natural Gas pipeline to MidAmerican Energy Holdings Co. to be completed this month.
At the same time, Dynegy has agreed to pay rival Enron $25 million for backing out of a merger between the Houston-based energy marketers.
Under the settlement, Enron has agreed to release Dynegy from all claims related to the terminated merger. Enron's bankruptcy judge in New York must approve the terms.