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Dynegy wants Enron bankruptcy case moved to Texas

Dynegy Inc has asked for Enron Corp's bankruptcy case to be removed from the New York court where it was filed on Sunday and transferred to Houston, Texas, where both energy traders are based.

In papers filed with Judge Arthur Gonzalez of New York, Dynegy alleged that Enron's decision to file in the Southern District of New York was "a classic example of the type of forum shopping that should not be condoned."

Dynegy said Houston was a better location because it met the standards of being closer to Enron's operations, assets, creditors, and witnesses, and was less costly to administer.

"In this time of reduced frequency and increased cost of airline travel... the costs to both creditors and the debtors in terms of both time and money will be astronomical if these cases remain in the Southern District of New York," Dynegy said in its motion.

Last week Enron blamed its bankruptcy filing on Dynegy's decision to cancel its $9 billion offer to buy Enron.

"This litigation strategy seems to be the backbone of the debtors' reorganisation tactics," Dynegy said of Enron's lawsuit.

On Tuesday, Dynegy countersued to protect what it says is an option to buy Enron's Northern Natural Gas Pipeline with the $1.5 billion invested in the pipeline by Dynegy and its partner, ChevronTexaco.

Enron could file in New York because its Enron Metals & Commodity Corp affiliate, one of 13 that also filed for bankruptcy, met the requirement of having "its principal place of business and its principal assets in New York."

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