Enron - Wikipedia. This article is about the corporation. For the play, see Enron (play). Enron Corporation. Enron Corp (Ask Why)Public. Traded as. NYSE: ENEIndustry. Energy. Fate. Bankruptcy. Predecessor. Successor. Founded. 19. 85 (1. Omaha, Nebraska, United States. Founder. Kenneth Lay. Defunct. 20. 07 (2. Headquarters. 14. Smith Street. Houston, Texas, United States. Key people. Number of employees. Websitewww. enron. Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. It was founded in 1. Houston Natural Gas and Inter. North, both relatively small regional companies in the U. S. Before its bankruptcy on December 2, 2. Enron employed approximately 2. 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 enactment of the Sarbanes. The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting firm.
O caso teve como protagonistas alguns integrantes do. E prosseguiu com um presente caro que deixou os investigadores intrigados. O Posto da Torre ocupa um. It ended its bankruptcy during November 2. U. S. 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. The low cost of natural gas and cheap labor supply during the Great Depression helped to fuel the company's early beginnings. The company doubled in size by 1. Minnesota. Over the next 5. Northern expanded even more as it acquired many energy companies and created new divisions within. It was reorganized in 1. Inter. North, which was a diversified energy and energy- related products company. Although most of the acquisitions conducted were successful, some ended poorly. Inter. North competed with Cooper Industries over a hostile takeover of Crouse- Hinds Company, who manufactured electrical products. Inter. North was ultimately unsuccessful as Cooper bought out Crouse- Hinds. Cooper and Inter. North feuded over numerous suits over the course of the takeover that were eventually settled after the transaction was completed. The subsidiary Northern Natural Gas operated the largest natural gas pipeline company in North America. By the 1. 98. 0s, Inter. North became a major force for natural gas production, transmission and marketing as well as for natural gas liquids, and was an innovator in the plastics industry. Under the leadership of CEO Robert Herring from 1. This growth was largely seen from the exploitation of unregulated Texas natural gas market and the commodity surge in the early 1. Towards the end of the 1. HNG's luck began to run out with rising gas prices forcing clients to switch to oil. In addition, with the passing of the Natural Gas Policy Act of 1. Texas market was more difficult to profit from and as a result the profits of HNG fell. After Herring's death in 1. M. D. Matthews briefly took over as CEO in a 3- year stint with initial success but ultimately saw a big dip in earnings that led to his exit. In 1. 98. 4, Kenneth Lay succeeded Matthews and inherited the troubled, but large diversified energy conglomerate. The most prominent being corporate raider Irwin Jacobs. In May 1. 98. 5, Internorth acquired HNG for $2. The combined assets of the two companies would create the second largest gas pipeline system at the time in the United States. Lay moved the headquarters of the new company back to energy capital Houston. The company then set out to find a new name, spent upwards of $1. The name was eventually dismissed over its apparent likening to an intestine and shortened to . The company had to pay off Jacobs over $3. Lay consolidated all the gas pipeline efforts under the Enron Gas Pipeline Operating Company. In addition, the company began to ramp up its electric power and natural gas efforts. In 1. 98. 8 and 1. In 1. 98. 9, Jeffrey Skilling, then a consultant at Mc. Kinsey & Co., came up with the idea to link natural gas to consumers in more ways, effectively turning natural gas into a commodity. Enron adopted the idea and called it the . Starting in 1. 98. Overseas Private Investment Corporation (OPIC) for a power plant in Argentina. Firstly, Enron invested heavily in overseas assets, specifically energy. Another major shift was the gradual transition of focus from a producer of energy to a company that acted more like an investment firm and sometimes a hedge fund, making profits off the margins of the products it traded. These products were traded through the Gas Bank concept, now called the Enron Finance Corp. Skilling hired Andrew Fastow in 1. Entrance into the retail energy market. California was one such state to do so. Enron, seeing an opportunity with rising prices, was eager to jump into the market. In 1. 99. 7, Enron acquired Portland General Electric (PGE); while an Oregon utility, it had potential to begin serving the massive California market since PGE was a regulated utility. The new Enron division, Enron Energy, ramped up its efforts by offering discounts to potential customers in California for switching their electric supplier to Enron from their previous supplier starting 1. Enron Energy also began to sell natural gas to customers in Ohio and wind power in Iowa. However, in 1. 99. Enron's first such opportunity was a natural gas power plant utilizing cogeneration that the company built in Teesside, UK. By 1. 99. 4, EI's portfolio included assets in Philippines, Australia, Guatemala, Germany, France, India, Argentina, the Caribbean, China, England, Colombia, Turkey, Bolivia, Brazil, Indonesia, Norway, Poland, and Japan. The division was becoming a large share of earnings for Enron, contributing 2. Mark and EI believed the water industry was the next market to be deregulated by authorities and seeing the potential, searched for ways to enter the market, similar to PGE. In 1. 99. 8, Enron International acquired Wessex Water for $2. Ultimately, after a promising IPO, the venture was a bust, Mark shed millions of dollars in operating the company was a large reason for Enron's failure. The company developed, built, and operated power plants and pipelines while dealing with rules of law and other infrastructures worldwide. Azurix failed to become successful in the water utility market, and one of its major concessions, in Buenos Aires, was a large- scale money- loser. Enron management pursued aggressive retribution against its critics, setting the pattern for dealing with accountants, lawyers, and the financial media. Enron was hailed by many, including labor and the workforce, as an overall great company, praised for its large long- term pensions, benefits for its workers and extremely effective management until the exposure of its corporate fraud. The first analyst to question the company's success story was Daniel Scotto, an energy market expert at BNP Paribas, who issued a note in August 2. Enron: All stressed up and no place to go, which encouraged investors to sell Enron stocks, although he only changed his recommendation on the stock from . One example of fraudulent records was during 1. Enron promised to repay Merrill Lynch & Co.'s investment with interest in order to show profit on its books. Debts and losses were put into entities formed . NNG was established as collateral for a $2. Dynegy Corporation when Dynegy was planning to buy Enron. When Dynegy examined Enron's financial records carefully, they repudiated the deal and dismissed their CEO, Chuck Watson. The new chairman and CEO, the late Daniel Dienstbier, had been president of NNG and an Enron executive at one time and was forced out of Enron by Ken Lay. NNG continues to be profitable now. Enron's demise occurred after the revelation that much of its profits and revenue were the result of deals with special purpose entities (limited partnerships which it controlled). This meant that many of Enron's debts and the losses that it suffered were not reported in its financial statements. In addition, the scandal caused the dissolution of Arthur Andersen, which at the time was one of the world's main accounting companies. The company was found guilty of obstruction of justice during 2. Enron audit. Although the conviction was dismissed during 2. Supreme Court, the damage to the Andersen name has prevented it from reviving as a viable business even on a limited scale. Enron also withdrew a naming- rights deal with the Houston Astros. Major League Baseball club to have its name associated with their new stadium, which was known formerly as Enron Field (now Minute Maid Park). Special Purpose Entities were created to mask significant liabilities from Enron's financial statements. These entities made Enron seem more profitable than it actually was, and created a dangerous spiral in which, each quarter, corporate officers would have to perform more and more financial deception to create the illusion of billions of dollars in profit while the company was actually losing money. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow directed the team which created the off- books companies, and manipulated the deals to provide himself, his family, and his friends with hundreds of millions of dollars in guaranteed revenue, at the expense of the corporation for which he worked and its stockholders. Enron president and chief operating officer Jeffrey Skilling began advocating a novel idea: the company didn't really need any . The corporation's financial claims, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if currently real. Thus, Enron could record gains from what over time might turn out to be losses, as the company's fiscal health became secondary to manipulating its stock price on Wall Street during the so- called .
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