Whos to blame for Enrons fall from grace?
A week ago, Enron Corporation, which was last year’s seventh largest revenue producer, filed for the largest corporate bankruptcy in American history. Then Enron blamed Dynegy, a crosstown Houston rival that was scheduled to acquire it, for backing out of the deal at the last minute, thus contributing to Enron’s collapse and bankruptcy. Archie Carroll more Carroll columns Just because Enron filed for Chapter 11 bankruptcy does not necessarily mean it is going out of business. The filing was intended to permit Enron time to restructure its debt so that it would be possible for it to remain solvent and pay off its creditors. Once a company files for Chapter 11 status, however, many businesses stop trading with it for fear they won’t be paid. At best, many of its existing creditors are likely to experience prolonged attempts to receive their payments. Investors and employees are taking a beating. Many of them are stunned at the turn of events that has seen the collapse of what was just a
