Enron wins court OK to sell mill, Maine land

WASHINGTON – Enron Corp. won court approval of bidding rules to auction off a Canadian paper mill and timberlands in Canada and Maine.

The auction for Papiers Stadacona Ltee. and St. Aurelie Timberlands Co. would take place on Nov. 10, if a $205 million offer made by lead bidder Peter M. Brant is topped by at least $7.65 million.

Judge Arthur J. Gonzales of the U.S. Bankruptcy Court in Manhattan approved the auction rules following a hearing last Thursday.

Papiers Stadacona produces newsprint, directory paper and paperboard at a mill in Quebec. The unit also operates a sawmill and owns about 32,000 acres of timberlands in Canada.

St. Aurelie Timberlands owns about 60,000 acres of timber in Maine and provides Papiers Stadacona with wood chips.

Enron bought the two units from Daishowa North America Inc. in March 2001 for $364 million and began exploring their sale shortly after it filed for Chapter 11 protection in December 2001.

A first round of bidding conducted in October 2002 by Enron’s investment bankers, the Blackstone Group LP, drew about eight bids, while a second round of bidding in January drew only six bids, the company said in a court filing Oct. 2. After a third round of bidding in May, Brant was selected as the lead bidder.