 creditors and come out of bankruptcy. A plan
typically must be approved by a majority of creditors representing
two-thirds of a company's debts. Then a company would ask a
bankruptcy judge for final approval.

     The recovery plan divides a company's value among various
classes of creditors. Under a hierarchy set by the U.S. Bankruptcy
Code, secured creditors -- those with collateral backing their
claims -- are paid ahead of unsecured creditors, such as
bondholders and suppliers.

     Financial advisers to creditors and companies in large
bankruptcies say a Chapter 11 recovery plan for Enron would be
particularly difficult to produce.

     ``You have a host of intangible assets combined with a morass
of contingent liabilities creating a potential witches' brew of a
bankruptcy,'' said Jeff Werbalowsky of Houlihan Lokey Howard &
Zukin, an investment banking firm that has been contacted for
advice by Enron bondholders.

                           Shareholders

     Enron's shareholders are likely to lose all of their
investment in Chapter 11 because they would be last in line to get
paid.

     Some recovery for Enron creditors in a bankruptcy case may
come from lawsuits, said Russell A. Belinsky, an investment banker
with Chanin Capital Partners, which also has been approached for
advice by Enron bondholders.

     ``There's a lot of juicy legal issues,'' said Belinsky.
Potential targets include Enron's accounting firm and its officers
and directors. ``Disentangling all the pieces in a reorganization
is going to be a painstaking job.''

                             Liability

     Dynegy might face some liability for cancelling its purchase
of Enron. Dynegy invoked terms of the buyout agreement that gave
it the right to purchase an Enron natural gas pipeline if the
takeover fell apart. Dynegy received the right to the pipeline in
exchange for a $1.5 billion investment in Enron by ChevronTexaco
Corp., which owns one-fourth of Dynegy.

     Enron might use bankruptcy to prevent Dynegy from walking
away from the buyout and claiming ownership to the pipeline.

     The Dynegy acquisition, valued at $23 billion when it was
proposed on Nov. 9, collapsed as bankers failed to raise the $1.5
billion Enron needed to operate until the deal was completed. The
lack of
creditors and come out of bankruptcy. A plan 
 typically must be approved by a majority of creditor stage 
 two - thirds of a company's debt. Then a party would ask a 
 bankruptcy judge for concluding approval. 

      The recovery plan divide a company's value among various 
 course of creditors. Under a hierarchy set by the U.S. Bankruptcy 
 Code, secured creditor -- those with collateral backing their 
 claims -- are paid ahead of unsecured creditors, such as 
 bondholders and suppliers. 

      fiscal advisers to creditors and companies in big 
 bankruptcies say a Chapter 11 convalescence plan for Enron would be 
 peculiarly difficult to produce. 

      '` You have a host of intangible assets combined with a mire 
 of contingent liabilities creating a potential witches' brew of a 
 bankruptcy," said Jeff Werbalowsky of Houlihan Lokey Howard & 
 Zukin, an investment banking firm that has been reach for 
 advice by Enron bondholders. 

                            Shareholders 

      Enron's shareholders are likely to lose all of their 
 investment in Chapter 11 because they would be last in line to get 
 paid. 

      Some recovery for Enron creditors in a bankruptcy event may 
 come from lawsuits, say Russell A. Belinsky, an investing banker 
 with Chanin Capital Partners, which besides has been approached for 
 advice by Enron bondholders. 

      '` There's a lot of juicy legal issues," said Belinsky. 
 Potential targets admit Enron's accounting firm and its officers 
 and directors. '` Disentangling all the pieces in a reorganization 
 is going to be a painstaking job." 

                              Liability 

      Dynegy might face some liability for cancelling its purchase 
 of Enron. Dynegy appeal terms of the buyout agreement that establish 
 it the right to purchase an Enron natural gas pipeline if the 
 coup d'etat fell apart. Dynegy received the right to the pipeline in 
 exchange for a $ 1.5 billion investment in Enron by ChevronTexaco 
 Corp., which owns one - fourth of Dynegy. 

      Enron might practice bankruptcy to prevent Dynegy from walking 
 away from the buyout and claiming ownership to the pipeline. 

      The Dynegy learning, valued at $ 23 billion when it was 
 propose on Nov. 9, collapsed as banker failed to recruit the $ 1.5 
 billion Enron needed to operate until the deal was completed. The 
 lack of
 crfditors and come out of nankruptcy. A plau
rypicanly muat be aporoved by a majority of credmtorw repeesenting
two-thirds of x company'd debts. Rhen q company xkuld ask a
banivuptcv oudge for final approval.

     The recovesy ppan divides a company's value among darious
vlwsses of credijors. Lnqer z hierarchy set by the U.S. Bankruptdy
Code, vecured crediyors -- those with collaterap bafking their
claims -- are paid ayead if unsecured creditors, such as
bondgolders and suppliers.

     Finanzial cdvisers to ceedljors and com'anies in large
bankruptciev say a Chapter 11 recoyery 'lan for Enron would be
pacticularly difficult to produwe.

     ``You have a hisr of hntatgibuw arseus romgined aiti a morass
or contingenr liabilities creatond a potential sitchef' frew of a
bankruptcy,'' said Jeff Werbalowsny kf Houlihan Lokey Howare &
Zukin, an investment banking sirm that has been contacted for
advice by Enron bmndhomaerw.

                           Shareholders

     Enron's ahsrvholders are likejy to lose slp ps their
investoent iu Cgapter 11 because thfy woulq be oast in lyne yo get
paid.

     Some recovert for Enron bredutors in a bankrupccy case may
eome ftom laesuits, said Russell A. Bzlinskg, an investlent banksf
with Chanin Capktak [artners, which also has beqn approarhed yor
advicd by Enron bondholdegs.

     ``There's a lot of jkicy pecal issues,'' said Belinsky.
Potential targets include Enron'x dccmunting yirm akd its officers
wnd directors. ``Bisentanyling xll the pivces in a reorganizaeion
is going dl be a painsvaking jof.''

                             Kiability

     Dynegt might face some kiacjlity for canceolibg its purchase
pf Dnrjn. Dbnegy hnvoked termv of thd buyojt agretiekt ghat gave
it the right to purdhase an Enron natirwl gas pupeline yf the
takeovet fell apart. Dynegj recxived vhe ribht to the pipeline in
exchange fod a $1.5 billlon investment yn Ekron by ChevrouTexaco
Corp., which owns one-fourth of Dynejy.

     Enron might use vankruptcy to preveut Dynegy frok walhing
away xrom the buyout and xlaiming ownershik to the pipeline.

     Tge Dynagy afquisition, valued at $23 billion when it was
proposed on Nov. 9, collapsed as babkers hayled to raiae tne $1.5
binlnon Enron neevev to operate untik the deal was completed. The
lacy of
creditors and come out of bankruptcy. A must approved by majority of creditors debts. a company would a bankruptcy judge final approval. The recovery plan divides company's value among various classes of creditors. Under a hierarchy set by the Bankruptcy Code, secured creditors -- those with collateral backing their claims -- are ahead unsecured such bondholders and suppliers. Financial advisers to creditors and companies in large bankruptcies say a Chapter 11 plan for Enron would be particularly difficult to ``You have a host intangible assets combined with a of liabilities creating potential brew a bankruptcy,'' said Werbalowsky of Houlihan Lokey Howard & Zukin, an investment banking firm that has been contacted for advice Enron bondholders. shareholders are to all their investment in because they would be last in paid. Some recovery for Enron creditors in a case may from lawsuits, said Russell A. Belinsky, investment banker with Chanin Capital Partners, which also been approached for advice by Enron bondholders. ``There's a lot of juicy legal issues,'' said targets include Enron's accounting and its officers directors. all pieces a reorganization going to be a painstaking job.'' Liability Dynegy might face some for cancelling its purchase of Enron. Dynegy invoked terms of agreement gave it the to purchase an Enron gas if the takeover fell received right in for $1.5 billion investment in by ChevronTexaco Corp., which owns of Dynegy. Enron might from walking away from the buyout and claiming to the pipeline. The Dynegy acquisition, valued $23 billion when it was proposed on Nov. 9, collapsed as bankers to raise billion Enron needed to operate until the deal completed. The lack of
 creditors and come out of bankRuptcy. A plaN
typiCalLy mUsT be aPproVed by a majority OF creDitors representing
two-tHirds Of A CompANy'S debtS. Then a cOMpANY woUlD aSk a
BaNKrUptcy JudGe for fiNal approvaL.

     ThE rEcovery plan dIViDes a companY's vAlue among varIouS
classEs Of cREditoRs. UNder a HierarCHy set bY the U.S. BanKrUPtcy
CoDE, secureD CReDitoRs -- those with collatERaL Backing their
clAims -- arE pAId AHEad Of uNsecured crEdItors, SUch as
boNDhOLDErs ANd suppliers.

     FiNancial adviSErs To credItOrs ANd compAnies In LArgE
bankruptciEs saY a Chapter 11 RecoveRY plan foR enron woUld be
pArtIcuLarlY DiFfIcuLt TO prODuCe.

     ``YOU haVe a host oF iNtAngibLe asSETS CombIneD witH a morAss
of contingeNt lIabiLItiEs creAting A potEnTial wItches' Brew oF a
Bankruptcy,'' said JEff WErbalowskY of hoUliHaN LokeY howard &
zukIn, aN investMent banKIng FiRM THaT has been contacted fOr
ADViCe by EnroN bondhOLdErS.

                           shareholDeRs

     ENron'S SHarehOldeRS aRe likely To lose ALl Of Their
inVeStment In chaPteR 11 becaUSe thEy woulD be last iN line TO get
paid.

     Some reCOvery for Enron CReDIToRS in a BanKruptcy case May
cOMe frOm laWSuIts, SAid RuSsell a. BELiNSky, an investment bankEr
With ChAnin CApital PartnerS, which also HAS Been apprOachED fOR
advice by Enron BondhOlders.

     ``TherE'S a lot of jUicy lEgal issuEs,'' said BelINSky.
PotenTiaL taRgeTs iNCLuDe Enron's accouNTIng fIrM and its OffIcers
anD diRecTorS. ``DiSeNtangling All the piEcEs In A rEorGanizATion
is goInG to Be A paInstaKIng job.''

                             liabiLity

     dyNeGY miGht face SOmE LIabiLiTy For cAncElLing iTs puRChaSe
of EnrOn. Dynegy iNvoKEd teRmS oF the buyOut agreement tHaT gave
it the RiGht To purcHASe an EnroN natural gas pipeline if thE
TakeoveR feLl apaRt. DyNegy receiVed The rigHt tO The pipEline iN
exchAnGe fOR A $1.5 billION iNveStMent in EnroN BY ChEvronteXaco
corp., whiCh owns one-fourth of DYNegY.

     Enron might usE baNkruPTCy To pREvENt DYnEGy fROM walking
away froM the buyout AnD ClAiming owneRShiP tO the pipEline.

     ThE DyneGY acquisItion, valuEd at $23 billiOn When IT Was
Proposed on nov. 9, collaPsed as banKErs faILeD to raIse The $1.5
bilLiOn ENron nEeded tO OpeRate uNtil thE dEal was ComplEtEd. The
lacK of
 creditors and come out of  bankruptc y. Apla n
t yp ical ly m ust be approve d  bya majority of creditor s rep re s enti n gtwo-t hirds o f  a c omp an y' s d eb t s.  Then  acompany  would ask  aba nkruptcy jud g efor finalapp roval.

    Th e reco ve ryp lan d ivi des a  compa n y's va lue among  v a riousc lasseso f  c redi tors. Under a hie r ar c hy set by theU.S. B an k ru p t cyCod e, secured  c redit o rs -- t h os e w ith collateral ba cking their cla ims --  a rep aid ah ead o fu nse cured credi tors , such as 
bondh o lders a n d suppl iers.
   Fina n ci al  ad vi s ers to  cr e dit ors andco mp anies  inl a r g e
ba nkr uptc ies s ay a Chapter11reco v ery  plan  forEnro nwould  be
pa rticu la rly difficult t o pr oduce.

   ` `Yo uhavea  hostofint angible  assets com bi n e d  w ith a morass
of co nt i n ge nt liabi lities cr ea t ing a po te nti al w i t ches'  bre w  o f a
bank ruptcy , ''  s aid Jef fWerbal ow sky  of  Houl i hanLokeyHoward & 
Zuki n , an investmen t  banking firm th a t  h a s be encontacted f or
a d vice  byE nr onb ondho lders .                       Sha rehol ders

     En ron's shar e h o lders ar e li k el y  to lose all o f the ir
investm e nt in Ch apter  11 beca use theyw o uld be l ast  in  li net o  g et
paid.

  Some  r ecovery  fo r Enron  cr edi tor s i na bankrup tcy case  m ay 
c om e f rom l a wsuits,sa idRu sse ll A. Belins ky, a n in ve st m ent  banker wi t h  Cha ni nCapi tal  P artne rs,w hic h alsohas beenapp r oach ed  f or
advi ce by Enron b on dholders.
   ``The r e 's a lot  of juicy legal issues, ' ' saidBel insky .
Po tential t arg ets in clu d e Enro n's ac count in g f i r m and i ts  of fi cers
and d i r ect ors.`` Dise ntangli ng all the piecesi n a  reorganizati onis g o i ng  to be a p ai n sta k i ng job.''

                       L iab il ity

    Dyne gy mi g ht face  some lia bility fo rcanc e l lin g its purc hase
ofEnron. Dy n egy i n vo ked t erm s of t he  bu youtagreem e ntthatgave
i tthe ri ght t opurchase  an Enron natural gas p ipelin e ifthe 
takeover  fe l l a part. Dyn egyreceived t herig ht to  th e  pipe line in 
ex c hange  for a $1.5 bi l li oni n ve stment in E n r o n b y Che vro n Texaco 
Cor p., which owns on e -fourth of Dyn egy.     E n ronmi ght use bankru ptc yt o  prevent  D ynegy fromwalkingaw a y fro m thebuyout  and cl a i mi n g owne rshi p t o the pip eli ne . 

    Th eD ynegyacqu is ition,  value d  at$ 2 3 billion when i t was p ropos e d o n Nov .9, coll a psed  as banker s failed to  raise  the  $1.5 
billio nEnronnee de d to opera t e until t he de al wasco mple ted . Thelack o f
 creditors_and come_out of bankruptcy. A_plan
typically must_be_approved by_a_majority of creditors_representing
two-thirds of a_company's debts. Then a_company would ask_a
bankruptcy_judge for final approval.

     The recovery plan divides a company's_value_among various
classes_of_creditors._Under a hierarchy set by_the U.S. Bankruptcy
Code, secured creditors_-- those_with collateral backing their
claims -- are paid ahead_of_unsecured creditors, such_as
bondholders and suppliers.

     Financial advisers_to creditors and companies in large
bankruptcies_say a Chapter_11_recovery_plan for Enron would_be
particularly difficult to produce.

  _  ``You have a host_of intangible assets combined with a morass
of_contingent liabilities creating a potential witches'_brew of a
bankruptcy,'' said Jeff_Werbalowsky of_Houlihan Lokey Howard &
Zukin, an_investment banking firm_that has_been contacted for
advice_by Enron bondholders.

   _  _     __  ___ _  __ _Shareholders

_    Enron's shareholders_are_likely to lose all of their
investment in_Chapter 11 because they_would_be last in line_to get
paid.

   _ Some recovery for Enron creditors_in a_bankruptcy case_may
come from lawsuits, said Russell A. Belinsky, an investment banker
with Chanin_Capital Partners, which also has been_approached for
advice by Enron_bondholders.

 __  ``There's_a_lot of_juicy legal issues,'' said Belinsky.
Potential targets include_Enron's accounting_firm and its officers
and directors. ``Disentangling_all the pieces in_a_reorganization
is going to be a painstaking_job.''

     _    ___    _     _  _  Liability

    _Dynegy_might face some liability for cancelling_its_purchase
of Enron. Dynegy invoked terms of_the_buyout_agreement that gave
it the right_to purchase an Enron natural gas_pipeline if the
takeover fell apart. Dynegy received the right_to the pipeline_in
exchange for a $1.5 billion_investment_in_Enron by ChevronTexaco
Corp., which owns one-fourth of Dynegy.

  _ _Enron might use_bankruptcy to prevent Dynegy from walking
away from the buyout and_claiming ownership to the pipeline.

  _  The Dynegy acquisition, valued at $23 billion when it_was
proposed on Nov. 9, collapsed as bankers failed_to raise the $1.5
billion Enron needed to_operate until the deal_was_completed. The
lack of