Enron Asks Citigroup for $750-Million Loan

Enron Corp., the biggest energy trader, has asked Citigroup Inc. to arrange a $750-million loan, ensuring access to credit if the beleaguered company is cut off from money markets, say people familiar with the matter.

Enron’s shares and bonds plunged after the firm said the Securities and Exchange Commission was probing its finances.

The Houston-based business, whose stock has fallen 75% this year amid concerns about failed investments, depends on a $3-billion commercial paper, or short-term debt, program to finance day-to-day operations.

As a second-tier commercial paper borrower, any ratings drop may cut off Enron from the commercial paper market and raise costs of short-term debt.

Enron shares dropped 86 cents to close at $19.79 on the New York Stock Exchange.