Dynegy, every mention
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tap a year for its mentions
every year anyone David Rosenthal 13Ben Gilbert 2
Verbatim, from the transcripts: the passages where Dynegy comes up
Enron · Acquired
- ▶ 2:22:53 David Rosenthal Once that becomes clear, he does the only next thing that is even any remote possible chance of saving the company, which is he reaches out to the CEO of Enron's largest competitor, Dinergy, and tries to broker a deal.
- ▶ 2:23:26 Ben Gilbert So they go to the kind of cross-town rivals in Houston, Dyna G.
- ▶ 2:23:37 David Rosenthal In, um, Conspiracy of Fools, I don't know if this is in Smartest Guys in the Room, there's quotes from Enron people talking about Dyna G as the Burger King to, uh, Enron's McDonald's.
- ▶ 2:24:02 David Rosenthal Dyna G's gonna
- ▶ 2:24:03 David Rosenthal Acquire Enron for eight billion dollars, an all stock deal, no cash, but Enron of course needs more cash to survive until the deal can close and Dynergy can complete its due diligence.
- ▶ 2:24:17 David Rosenthal So Dynergy lends one and a half billion dollars to Enron in cash to help Enron through the liquidity crisis.
- ▶ 2:25:09 David Rosenthal In the intervening period, while all the documents are being prepared and Dinergy is doing its due diligence on the deal, it comes out.
- ▶ 2:26:27 David Rosenthal Blows through the one and a half billion dollars that Dinergy lent it and is out of money again.
- ▶ 2:27:26 David Rosenthal Dinergy walks away from the deal.
- ▶ 2:28:38 Ben Gilbert As a part of the Dyna-G term sheet, upon completion of the deal, Ken Lay just got sixty million dollars in cash as, like, a bonus.
- ▶ 2:29:04 David Rosenthal It ended up not mattering anyway, because the Dinergy deal didn't happen, but yeah, crazy.
- ▶ 2:48:09 David Rosenthal However, if you remember from the Dyna-G aborted transaction, the assets that secured the one and a half billion dollars were the pipelines.
- ▶ 2:48:27 David Rosenthal Well, when the deal falls apart and Enron burns through the cash, Dynagy seizes the pipelines.
- ▶ 2:48:32 David Rosenthal They operate them for like a short while, but like, we don't, we don't really want these.
- ▶ 2:50:48 David Rosenthal So if you had bought Enron equity in those days between the collapsing of the Dinergy merger