Enron Failure

ENRON CORPORATION

Enron was a Houston-based energy in united states-trading and Utilities Company known for one of the biggest accounting frauds in history.

The company filed for bankruptcy in 2001 and has since a symbol of corporate corruption.

Enron Corp brief history

Enron Corporation was one of the largest global energy, services and commodities company. Before it was filed bankruptcy under chapter 11, it sold natural gas and electricity, delivered energy and other commodities such as bandwidth internet connection, and provided risk management and financial services to the clients around the world.

Enron was based in Houston, Texas, and was founded in July 1985 (though company with Enron name emerged still in 1930 (Swartz, Watkins, 2003)) by the merger of InterNorth of Omaha in Nebraska, and Houston Natural Gas. The Houston’s Natural Gas's CEO Kenneth Lay headed the merger of the two companies. Kenneth Lay, the former chief executive officer of Houston Natural Gas, became CEO, and the next year won the post of chairman. Enron was originally solely involved with the distribution and transmission of electricity and gas in the United States. In the merger, Enron incurred a large amount of debt, and as a result of deregulation, no longer had exclusive rights to its pipelines. The company had to find a way to generate profits and cash flow. Kenneth Lay hired Jeffrey Skilling to work for Enron as an accountant. Skilling suggested the practice of buying gas from a network of suppliers and selling it to consumers at a fixed price with a contract. Enron was interested in the expansion, building, and operation of pipelines, power plants, and other infrastructure worldwide. After just a year of operation Enron merged with a company called Spectrum Seven, a company whose chairman and CEO is the former president of the United States, George W. Bush. In 1999, Enron tried to expand their company by creating the Azurixs Corporation, a water utility company. Overall the...