December 10, 2001—Enron Corp., a leading energy provider, recently filed voluntary petitions for Chapter 11 reorganization, and also filed suit against Dynegy Inc., alleging breach of contract in connection with Dynegy’s termination of its proposed merger with Enron. Enron is seeking damages of at least $10 billion. Proceeds from the lawsuit would benefit Enron’s creditors.
To conserve capital, Enron will implement a cost-saving program that includes substantial workforce reductions. These reductions primarily will affect the company’s operations in Houston, where Enron currently employs approximately 7,500 people. In addition, the company will continue its accelerated program to divest or wind down non-core assets and operations. Details of the units to be affected will be released to the public in the coming weeks.
“From an operational standpoint, our energy businesses-including our pipelines and utilities-are conducting normal operations and will continue to do so, ” said Kenneth L. Lay, chairman and CEO of Enron, after announcing the filings. “While uncertainty during the past few weeks has severely impacted the market’s confidence in Enron and its trading operations, we are taking the steps announced today to help preserve capital, stabilize our businesses, restore the confidence of our trading counterparties, and enhance our ability to pay our creditors.”
For more information, contact Enron.
