Two years on from being served with a wind-up petition, Enron Re was back in court on Friday with a new petition of the court for more time "to return to solvency".

Enron Re was given another year by the Supreme Court on Friday to try to right its financial woes. This follows it having asked for a similar adjournment of the wind-up proceedings in March, 2002.

Supreme Court Judge Ian Kawaley granted the request from Wakefield Quin lawyer Lesley Basden to adjourn the wind-up petition for the Enron subsidiary, another year, after being asked for a "six to 12 month" stay.

The move comes after a wind-up petition was first filed against the company more than two years ago after its parent company Enron was embroiled in an accounting scandal and put out of business.

Ms Basden told the court said that Enron Re's financial position at the end of May stood at $7.41 million, but it was not clear what the companies' level of liabilities were.

The company was originally petitioned for wind up on 2 Jaunary, 2002 by the Supervisor of Insurance and the Bermuda Monetary Authority after it was found that the company had less than the minimum $1 million required as a margin of solvency.

At that time the company had $9.58 million in assets but close to $9 million in liabilities leaving it with less than the required $1 million.

In court on Friday, Ms Basden indicated that Enron Re had been able to renegotiate some of its insurance contracts and that it did appear it could be able to "return to solvency".

The request was said to be supported by the joint provisional liquidators, and that the Supervisor of Insurance was also in agreement after being apprised of the process through regular updates from the liquidators.

"Basically the Supervisor of Insurances sees this in the best interest of creditors and has no problem," Ms Basden said.

In addition, Ms Basden told the Court that Enron of America, as Enron Re's largest creditor, also supported the action.

When Mr. Justice Kawaley asked how much time was being asked for, Ms Basden said: "The joint provisional liquidator's preference is to have it adjourned for 12 months."

Mr. Justice Kawaley agreed to the year-long adjournment of the wind-up order but asked that the courts be advised of "any material developments, in that period" by the joint provisional liquidators.

He added that they had been "given an opportunity to get into the Guinness Book of World Records for returning an Enron entity to solvency".

Ms Basden also asked that the affidavit be sealed as there were "delicate negotiations" under way that they wished not to make public.

That was agreed.

Enron Re, which is understood to have once been one of nearly 800 Enron subsidiaries around the world, was formed in 2000 as a Class 3 insurer.