HOUSTON, Texas, April 29, 2002 -- In connection with its previously announced tender offer and consent solicitation for its 10-3/8 percent Series B Senior Dollar Notes due 2007, its 10-3/8 percent Series A and B Senior Sterling Notes due 2007, and its 10-3/4 percent Series B Senior Dollar Notes due 2010, Azurix Corp. announced Sunday that it is extending to 5:00 p.m. New York time on Tuesday, April 30, 2002, the deadline by which holders of these notes must tender and consent to receive the consent payment of 1.5 percent of par.
This new deadline is the close of business on the day before Enron Corp. intends to notify the U.S. Bankruptcy Court if it is not proceeding with the hearing scheduled on May 2, 2002, seeking the court's approval of Enron's approval of Azurix's proposed sale of Wessex Water Ltd. and the tender offer and consent solicitation.
On April 26, 2002, a committee purporting to hold beneficially approximately 31.74 percent of the outstanding senior notes of Marlin Water Trust, a beneficiary of Azurix's largest shareholder, Atlantic Water Trust, filed an objection to Enron's motion before the Bankruptcy Court. These Marlin noteholders contend, among other things, that Azurix's paying for its Senior Notes in the tender offer and consent solicitation is not in the best interest of Atlantic Water Trust unless Azurix also pays, from proceeds of the Wessex sale, approximately $19 million in debt that Azurix owes to Atlantic Water Trust, which is among the continuing obligations of Azurix described in the Offer to Purchase and Consent Solicitation.
Salomon Smith Barney is acting as dealer manager of the tender offer and consent solicitation. Questions regarding the tender offer and consent solicitation may be directed to Salomon Smith Barney at 800/558-3745. An Offer to Purchase and Consent Solicitation, dated April 1, 2002, and related Letter of Transmittal and Consent describing the tender offer and consent solicitation have been distributed to holders of notes. Requests for additional copies of documentation can be made to Mellon Investor Services at 866/293-6625.
