![]() ![]() ![]() It is the largest bankruptcy, due specifically to fraud, of all time. On September 7, 2006, Enron sold its last remaining subsidiary, Prisma Energy International, to Ashmore Energy International Ltd. 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. It ended its bankruptcy during November 2004, pursuant to a court-approved plan of reorganization. ![]() Įnron filed for bankruptcy in the Southern District of New York in late 2001 and selected Weil, Gotshal & Manges as its bankruptcy counsel. The scandal also affected the greater business world by causing, together with even larger fraudulent bankruptcy WorldCom, the dissolution of the Arthur Andersen accounting firm, which had been Enron and WorldCom's main auditor for years. 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–Oxley Act of 2002. Enron has become synonymous with willful corporate fraud and corruption. Fortune named Enron "America's Most Innovative Company" for six consecutive years.Īt the end of 2001, it was revealed that Enron's reported financial condition was sustained by an institutionalized, systematic, and creatively planned accounting fraud, known since as the Enron scandal. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper company, with claimed revenues of nearly $101 billion during 2000. It was founded by Kenneth Lay in 1985 as a merger between Lay's Houston Natural Gas and InterNorth, both relatively small regional companies. Archived official website at the Wayback Machine (archived (Date mismatch))Įnron Corporation was an American energy, commodities, and services company based in Houston, Texas. ![]()
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