Enron Corporation (former New York Stock Exchange ticker symbol ENE) was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world's major electricity, natural gas, communications, and pulp and paper companies, with claimed revenues of nearly $111 billion during 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years.
At the end of 2001, it was revealed that its reported financial condition was sustained substantially by an institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Enron has since become a well-known example of willful corporate fraud and corruption. The scandal also brought into question the accounting practices and activities of many corporations in the United States and was a factor in the creation of the Sarbanes–Oxley Act of 2002. The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting firm.
Enron filed for bankruptcy in the Southern District of New York during late 2001 and selected Weil, Gotshal & Manges as its bankruptcy counsel. It ended its bankruptcy during November 2004, pursuant to a court-approved plan of reorganization, after one of the most complex bankruptcy cases in U.S. history. A new board of directors changed the name of Enron to Enron Creditors Recovery Corp., and emphasized reorganizing and liquidating certain operations and assets of the pre-bankruptcy Enron. On September 7, 2006, Enron sold Prisma Energy International Inc., its last remaining business, to Ashmore Energy International Ltd. (now AEI).
Major banks exposed include Abbey National, ANZ, Bear Stearns, Canadian Imperial Bank of Commerce, Chubb Corp, Citigroup, Commonwealth Bank, Crédit Lyonnais, ING Group, JP Morgan, Mitsubishi UFJ Financial Group, National Australia Bank, Nikko Cordial, Principle Financial, Sanwa Bank, Sony Bank, Sumitomo Mitsui Financial Group, and Westpac.
1 Early history
1.1 Misleading financial accounts
2 Former management and corporate governance
3.1 Online marketplace services
3.2 Broadband services
3.3 Energy and commodities services
3.4 Capital and risk management services
3.4.1 Commercial and industrial outsourcing services
3.4.2 Project development and management services
3.5 Enron International
3.5.4 Project Summer
3.6 Enron Global Exploration & Production, Inc.
5 Principal assets
5.1 Power plants
5.3 Electric utilities/distributors
5.4 Natural gas-related businesses
5.5 Pulp and paper
6 Enron Prize for Distinguished Public Service
7 2001 Accounting scandals
7.1 Accounting practices
7.2 Peak and decline of stock price
8 California's deregulation and subsequent energy crisis
9 See also
12 External links
Enron Complex in Downtown Houston.
Enron's predecessor was the Northern Natural Gas Company, which was formed in 1932, in Omaha, Nebraska. It was reorganized in 1979 as the main subsidiary of a holding company, InterNorth which was a diversified energy and energy related products company. Internorth was a major business for natural gas production, transmission and marketing as well as for natural gas liquids and was an innovator in the plastics industry.
The company initially named itself "HNG/InterNorth Inc.", even though InterNorth was the nominal parent. It built a large and lavish headquarters complex with pink marble in Omaha (dubbed locally as the "Pink Palace"), that was later sold to Physicians Mutual corporation. However, the departure of ex-InterNorth and first CEO of Enron Corp Samuel Segnar six months after the merger allowed former HNG CEO Kenneth...
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