Enron May Be Forced to Settle $690-Million Debt

Enron Corp. warned in a regulatory filing that it could be forced to pay a $690-million debt by next week and reduced its already abysmal third-quarter earnings.

The energy giant said a downgrading of its debt last week triggered a Monday deadline for it to repay or offer collateral against the $690 million owed to a party in one of its partnerships.

If the debt isn’t paid, the partner could liquidate the partnership’s assets, which include a Brazilian natural gas company that Enron was counting on selling to raise $250 million in cash.

Enron has already used up its $3-billion credit line, secured roughly $2 billion in loans and is looking for more cash.

The company reduced its previously reported results for the third quarter by 3 cents a share, according to its filing with the Securities and Exchange Commission. That would put its loss at 87 cents a share.