In 1985, Enron was constructed the Natural Gas Company in Houston. Beginning Enron was a manager of interstate gas pipelines in the country. In 1989, Enron distinguished into the trading energy related investments. After some of years, Enron becomes the largest trader of energy in US and the UK. In 1994, Enron also successful in electricity in US as well. Enron goes future with a process to reconstruct its corporate look to a new, stylish-looking, more modern, and environmentally conscious type of company in 1997. It establishes a new corporate symbol and manages Zond Corporation; it is one of the best developers of wind energy power. The purchase leads to the control of the Renewable Energy Corporation of Enron. Enron also enters with new weather derivative products in addition to trade and energy. Enron is already buying and selling the pulp, cellulose, paper, plastics, metals, fertilizer and bandwidth.
Enron agrees to pay 100 million dollars over the period of 30 years for rights to new ballpark of Houston now it is called as the Enron Field. Enron Energy Services made its first billion dollar transaction with the Suiza Foods. After that Enron creates the first global Web based commodity trading site and also launches Enron Online. In 2000, a Fortune magazine congratulates Enron for the Most Innovative Company in America and it ranked 24th among 100 of best employers in the country. In the beginning of the same year, Enron ranked the 6th largest energy company in the world. In 2000, Enron and its new strategic investors are America Online and IBM launched the New Power Company, it is the first energy service provider of the country for small businesses and residential in US energy markets. After one year, Enron chief executive officer Jeff Skilling resigns his position. Former CEO and Chairman Ken Lay returns to their position atop Enron. In 2001, Enron reports 638 million dollars of third quarter of loss and announces 1.2 billion dollars reduced in shareholder impartial price, partly related to unlike partnerships run by its chief financial officer, Andrew Fastow. After few days Enron acknowledges that the Securities and Exchange Commission made an inquiry into a possible conflict of interest related to the company's operations. After few days later, Enron broke its relationship with Fastow's partnership. At the same year, Enron borrows more than 3 billion dollars, its boost the confidence of the customers and investors. After few days, Enron announces that the SEC inquiry has been advanced to the investigation. At the month of November, Enron obtains yet another 1 billion dollars in new loans for using its pipelines as collateral. After few days, the price of Enron's stock drops below 10 dollars a share down on December. The reports say that the collapse and stampede of Enron's share money. Enron's corporation was now firmly on the way to its end.
Enron announces that it made a 638 million dollars loss during fiscal year of 2001. At the same month, Andrew Fastow is forcing out to the chief financial officer because of his involvement into questionable business partnerships and transactions. Securities and Exchange Commission standard its questions into Enron's dealings into a formal investigation on Enron's accounting records and business transactions. Suddenly, Enron reconsider its financial statements. The revision leads to reduced earnings by an additional 586 million dollars for four years, due to losses with partnerships.
At the same month, Dynegy, smaller energy company, offers a plan for Enron and proposes a buy out of the Enron Company for 10 billion dollars in stock. Dynegy also agrees to pay 13 billion dollars more for Enron's debts. Finally, Enron agree with Dynegy.
In December, 2001 Enron makes bankruptcy. This is big Chapter of 11 bankruptcy case in the United States history. Its two major investors, J.P Morgan and Citibank, that the two banks provide 1.5 billion dollars in short term emergency funding. Enron announces that it will immediately layoff 4,000 employees from its headquarters. That the time many employees had lost up to 90% of their retirement savings as Enron's shares plunged.
At the same month Enron discloses that it paid more than 50 million dollars to its traders for leaving Enron as it intended to merge with Dynegy. Another process of Enron's revelations, the public finds out that Enron paid 55 million dollars in bonuses for bankruptcy. In December, Amalgamated Bank of New York, The bank claims that Enron's officials spitefully inflated the company's stock value, fraudulently gaining the most of money for themselves, using false financial records.
At the same month, The US Department of Labor launches an inquiry into Enron’s mismanage of employee retirement pensions. The percentage of 70 to 90 of former Enron's employees lost their retirement savings in the company’s stock crash. After few days, the SEC begins investigation into the role played by Enron's independent auditors. The CEO of Arthur Andersen investigate that Enron might have committed the illegal acts in financial accounting practices; this statement leads to a criminal probation by the US Department of Justice.
In January, Enron and Dynegy, both of companies settle their dispute. Enron lost the legal battle and it turns over the ownership over the Northern Natural Gas Pipeline to Dynergy. The Department of Justice launches a criminal probation of Enron. Attorney General John Ashcroft and his Chief staff, David Ayres, refuse to participate in the investigation because Enron was a major contributor Ashcroft's failed bid.
Many observers blame the recent Enron's collapse on the free markets and deregulation and top management walking off with thousands of millions of dollars while employees lose their jobs, and customers get to look forward to more rolling blackouts and investors lose millions of dollars.
At the same month, Dynegy, smaller energy company, offers a plan for Enron and proposes a buy out of the Enron Company for 10 billion dollars in stock. Dynegy also agrees to pay 13 billion dollars more for Enron's debts. Finally, Enron agree with Dynegy.
In December, 2001 Enron makes bankruptcy. This is big Chapter of 11 bankruptcy case in the United States history. Its two major investors, J.P Morgan and Citibank, that the two banks provide 1.5 billion dollars in short term emergency funding. Enron announces that it will immediately layoff 4,000 employees from its headquarters. That the time many employees had lost up to 90% of their retirement savings as Enron's shares plunged.
At the same month Enron discloses that it paid more than 50 million dollars to its traders for leaving Enron as it intended to merge with Dynegy. Another process of Enron's revelations, the public finds out that Enron paid 55 million dollars in bonuses for bankruptcy. In December, Amalgamated Bank of New York, The bank claims that Enron's officials spitefully inflated the company's stock value, fraudulently gaining the most of money for themselves, using false financial records.
At the same month, The US Department of Labor launches an inquiry into Enron’s mismanage of employee retirement pensions. The percentage of 70 to 90 of former Enron's employees lost their retirement savings in the company’s stock crash. After few days, the SEC begins investigation into the role played by Enron's independent auditors. The CEO of Arthur Andersen investigate that Enron might have committed the illegal acts in financial accounting practices; this statement leads to a criminal probation by the US Department of Justice.
In January, Enron and Dynegy, both of companies settle their dispute. Enron lost the legal battle and it turns over the ownership over the Northern Natural Gas Pipeline to Dynergy. The Department of Justice launches a criminal probation of Enron. Attorney General John Ashcroft and his Chief staff, David Ayres, refuse to participate in the investigation because Enron was a major contributor Ashcroft's failed bid.
Many observers blame the recent Enron's collapse on the free markets and deregulation and top management walking off with thousands of millions of dollars while employees lose their jobs, and customers get to look forward to more rolling blackouts and investors lose millions of dollars.
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