Prisma Energy International
Encyclopedia
Prisma Energy International Inc., was a former subsidiary of Enron
Corporation, formed in 2003 to own and manage the majority of Enron's overseas assets, formerly known as "Enron International". Prior to its official organization, Prisma was referred to within Enron as "InternationalCo". Enron's original bankruptcy reorganization plan, presented in early 2002, would have created a company broadly similar to Prisma (known under the working name "OpCo Energy"), but including Portland General Electric
and the energy trading business, both later divested separately. As one of the final steps in Enron's liquidation, following their 2001 bankruptcy, Prisma was sold to Ashmore Energy International Ltd., a unit of Ashmore Group
Plc., in 2006. Prisma was structured as an 'offshore
' United States
corporation
incorporated in the British Overseas Territory of the Cayman Islands
, but with its headquarters in Houston, Texas. It served as a holding company for 15 gas and electricity businesses. Its subsidiary, Prisma Energy International Services LLC, employed approximately 125 individuals, most at its headquarters based in Houston, Texas
. Assets in which Prisma Energy managed an interest employed an additional 6,500 employees worldwide. Following its 2006 sale to Ashmore Energy International Limited, Prisma Energy International Inc. was merged/amalgamated with Ashmore Energy International Limited with Prisma Energy being the survivor company. In December 2006, Prisma Energy International Inc. changed its name to Ashmore Energy International and, subsequently, in May 2007 to AEI.
, were expected to receive between 17 and 22 cents on the dollar in cash and in Prisma stock due to its parent company Enron's dissolution. Prisma Energy had three business segments: natural gas
, power distribution, and power generation on four continents. The natural gas units process and supply liquefied petroleum gas (LPG) in Bolivia
, Brazil
, Colombia
, and South Korea
. The power distribution business consisted of Elektro Eletricidade, a Brazil-based company with 1.8 million customers. Prisma Energy's power generation units managed power plants in Europe
and South America
. As of 2006, Enron's bankruptcy case is still ongoing. Despite earlier plans to spin-off Prisma as an independent, public company, Enron instead reached a deal to sell the business outright to a unit of the London-based Ashmore Group
. On September 7, 2006, the sale of Prisma to Ashmore Energy International Limited was completed.
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
Corporation, formed in 2003 to own and manage the majority of Enron's overseas assets, formerly known as "Enron International". Prior to its official organization, Prisma was referred to within Enron as "InternationalCo". Enron's original bankruptcy reorganization plan, presented in early 2002, would have created a company broadly similar to Prisma (known under the working name "OpCo Energy"), but including Portland General Electric
Portland General Electric
Portland General Electric is an electrical utility based in Portland in the U.S. state of Oregon. It distributes electricity to customers in parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - half of the inhabitants of Oregon...
and the energy trading business, both later divested separately. As one of the final steps in Enron's liquidation, following their 2001 bankruptcy, Prisma was sold to Ashmore Energy International Ltd., a unit of Ashmore Group
Ashmore Group
Ashmore Group plc is a large British investment manager dedicated to the emerging markets. Established in 1992, the company is a constituent of the FTSE 100 Index. The Chairman is Michael Benson and the Chief Executive is Mark Coombs. It is headquartered in London.-Senior management:-External...
Plc., in 2006. Prisma was structured as an 'offshore
Offshoring
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...
' United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
incorporated in the British Overseas Territory of the Cayman Islands
Cayman Islands
The Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
, but with its headquarters in Houston, Texas. It served as a holding company for 15 gas and electricity businesses. Its subsidiary, Prisma Energy International Services LLC, employed approximately 125 individuals, most at its headquarters based in Houston, Texas
Houston, Texas
Houston is the fourth-largest city in the United States, and the largest city in the state of Texas. According to the 2010 U.S. Census, the city had a population of 2.1 million people within an area of . Houston is the seat of Harris County and the economic center of , which is the ...
. Assets in which Prisma Energy managed an interest employed an additional 6,500 employees worldwide. Following its 2006 sale to Ashmore Energy International Limited, Prisma Energy International Inc. was merged/amalgamated with Ashmore Energy International Limited with Prisma Energy being the survivor company. In December 2006, Prisma Energy International Inc. changed its name to Ashmore Energy International and, subsequently, in May 2007 to AEI.
Scope of operations
Prisma Energy managed interests in international energy assets focused on transportation, distribution and generation of gas and electricity with approximately: of natural gas transmission pipelines of oil/liquids pipelines of electric transmission and distribution lines- 1,903 MW of electric power generating capacity
- 4 million LPG and electric power customers
- 15 businesses located in 11 countries
Enron bankruptcy
According to the final restructuring plan submitted to bankruptcy court, Enron Corporation will be dissolved at the conclusion of the restructuring process, which would have allowed Prisma Energy International to emerge as an independent company. Enron's creditors, who lost about $63 billion due to its massive bankruptcyBankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, were expected to receive between 17 and 22 cents on the dollar in cash and in Prisma stock due to its parent company Enron's dissolution. Prisma Energy had three business segments: natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
, power distribution, and power generation on four continents. The natural gas units process and supply liquefied petroleum gas (LPG) in Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
. The power distribution business consisted of Elektro Eletricidade, a Brazil-based company with 1.8 million customers. Prisma Energy's power generation units managed power plants in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
. As of 2006, Enron's bankruptcy case is still ongoing. Despite earlier plans to spin-off Prisma as an independent, public company, Enron instead reached a deal to sell the business outright to a unit of the London-based Ashmore Group
Ashmore Group
Ashmore Group plc is a large British investment manager dedicated to the emerging markets. Established in 1992, the company is a constituent of the FTSE 100 Index. The Chairman is Michael Benson and the Chief Executive is Mark Coombs. It is headquartered in London.-Senior management:-External...
. On September 7, 2006, the sale of Prisma to Ashmore Energy International Limited was completed.
Board members
Board members included:- Ron Haddock, Executive Chairman and CEO
- John W. Ballantine
- Philippe A. Bodson
- Lawrence S. "Larry" Coben
- Dr. Paul K. Freeman
- Henri Philippe
- Robert E. Wilhelm
External links
- http://www.hoovers.com/prisma-energy/--ID__136312--/free-co-factsheet.xhtml - 'Prisma Energy International Inc.' information