graphic
graphic  
graphic
News > Companies
graphic
Enron cuts jobs in Europe
graphic November 30, 2001: 4:55 p.m. ET

Cuts 1,100 in London, leaving 10% of employees to wind up operations.
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • Dynegy scraps merger, Enron's future in doubt - Nov. 28, 2001
  • S&P on Enron downgrade - Nov. 28, 2001
  • Enron staff fatalistic about news - Nov. 28, 2001
  • Dynegy set to buy Enron for $9.5B - Nov. 9, 2001
  • Dynegy, Enron confirm talks; Enron restates earnings - Nov. 8, 2001
  •  
    graphic
    graphic
    graphic       graphic
  • Enron
  •  
    graphic
    NEW YORK (CNN/Money) - Enron Corp. cut 1,100 jobs in Europe Friday as the troubled energy trading company gets set for what many analysts and legal specialists say is an almost inevitable bankruptcy filing.

    Enron employees leaving the company's offices in London told CNN that a small staff will remain to wind up existing operations. The crippled energy company has 21,000 staff worldwide.

    Enron (ENE: down $0.10 to $0.26, Research, Estimates) is likely to file for bankruptcy early next week, a person familiar with the situation told CNN Friday.

    Another person said, however, that Enron was still considering all its options. "We don't know about next week," the person told CNN/Money late Friday, adding the company was "looking at all sorts of options."

    But if it does file next week it is expected to be under Chapter 11, and not Chapter 7, of the U.S. Bankruptcy Code, people involved in the situation said. In Chapter 11, a company is protected from creditors while it stays in business and tries to reorganize; a Chapter 7 is usually a liquidation.

    After failing to salvage a rescue deal with Dynegy Inc. Wednesday, the expected filing by Enron would be the biggest bankruptcy in the nation's history.

    With about $62 billion in assets, Enron's bankruptcy would dwarf that of Texaco Inc., which had $36 billion in assets when it filed in the spring of 1987, according to BankruptcyData.com.

    The filing would mark a stunning reversal for Enron, once the nation's largest energy trading company, whose stock has lost nearly all its value over the last year as its financial problems mounted.

    graphic  
    Shortly after the deal with Dynegy collapsed, Enron Chief Financial Officer Jeff McMahon said late Wednesday that he prefers to fix Enron without going to bankruptcy court, but he would not rule out a filing. Enron sought protection from creditors for its European energy trading operations Thursday.

    As Enron weighs its future, the embattled energy company faces the prospect of lengthy hearings in Congress after its unprecedented collapse.

    If Enron files Chapter 11, it will need a so-called debtor-in-possession loan to help it start paying back some creditors and allow it to renegotiate with others. But Enron is still trying to determine the amount needed, a source said.

    Enron declined to comment. graphic


    Reuters contributed to this story

      RELATED STORIES

    Dynegy scraps merger, Enron's future in doubt - Nov. 28, 2001

    S&P on Enron downgrade - Nov. 28, 2001

    Dynegy set to buy Enron for $9.5B - Nov. 9, 2001

    Dynegy, Enron confirm talks; Enron restates earnings - Nov. 8, 2001

      RELATED LINKS

    Enron





      graphic


    Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
    Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
    graphic