This NY Times article reports that The Bechtel Group and the General Electric Company, partners of Enron Corporation in the troubled Dabhol Power Company in India, have bought Enron’s 65 percent share of Dabhol to recoup part of the $1.2 billion they invested in the failed $3 billion venture. Bechtel and GE, which were the two main contractors for the plant, each previously had a 10 percent stake in Dabhol.
Dabhol was one of several major Enron foreign investments that were poorly structured and unprofitable, eventually contributing to the financial problems that forced Enron into bankruptcy. The background into the Dabhol power plant deal are explained well in the best book on the demise of Enron, Bethany McLean and Peter Elkind’s “The Smartest Guys in the Room — The Amazing Rise and Scandalous Fall of Enron.”