Abbey National says Enron owes £115m

Abbey National says it's owed £115 million by Enron.

Abbey National says it's owed £115m by Enron.

The mortgage bank says it will have to set aside £95m in the second-half to cover possible losses.

Abbey joins a string of creditors facing potential losses from the collapse of the US energy giant.

Others include National Australia Bank and Daiwa Asset Management.

Enron is currently carrying £10.5bn of debt, but last week had less than £1.4bn in the bank.

It's thought the corporation is likely to file for bankruptcy early next week - making it the biggest corporate failure in US history.

Abbey National says: "The exposures to the Enron Group at the time they were acquired were predominantly rated investment grade.

"Overall, the business has continued to deliver a solid performance since issuing its trading statement."

National Australia Bank, which owns Yorkshire Bank and Clydesdale Bank in the UK, says it has secured and unsecured exposure to Enron totalling around £141m.