Enron: Power
Follow the rise of former energy giant Enron Corp. as it tops the energy world, then starts to slip into the biggest corporate bankruptcy in U.S. history.
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Houston Natural Gas merges with InterNorth, a natural gas company based in Omaha, Neb., to form the modern-day Enron, an interstate and intrastate natural gas pipeline company with 37,000 miles of pipe. Kenneth Lay is later appointed chairman and chief executive.
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Enron begins trading natural gas commodities, eventually becoming the largest natural gas merchant in North America and the United Kingdom.
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Jeff Skilling joins Enron after leading McKinsey & Co.'s energy consulting business. Six years later, he becomes Enron's president and chief operating officer.
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Enron acquires electric utility holding company Portland General Corp. in a $2.1 billion stock swap.
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Enron buys Britain's Wessex Water for $2.2 billion. Wessex becomes the core of Enron's new water unit, Azurix.
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Financing closes for second phase of the $3 billion Dabhol power plant project in India in which Enron holds a 65 percent stake.
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Azurix goes public with $700 million initial public offering at $19 per share.
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Enron withdraws from oil and natural gas production by divesting its stake in subsidiary Enron Oil & Gas Co., which is renamed EOG Resources.
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Enron's stock hits an all-time high of $90.56.
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The Azurix board agrees to be bought out by Enron at $8.375 per share after stock prices plummet and performance targets fail to be met. Enron announces Jeffrey Skilling will take over as chief executive. Kenneth Lay remains as chairman.
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During a public appearance in California, Skilling is hit in the face with a cream pie thrown by a protester as Enron comes under fire for "profiteering" from the electricity crisis.
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Skilling resigns as Enron president and chief executive officer after running the company for just six months, citing personal reasons. Ken Lay returns to position of chief executive officer.
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Enron agrees to sell Portland General to Northwest Natural Gas Co. for $1.8 billion.
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Lay talks to Commerce Secretary Don Evans. The next day, Enron reports a $638 million third-quarter loss and discloses a $1.2 billion reduction in shareholder equity, partly blamed on chief financial officer Andrew Fastow.
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Enron says the U.S. Securities and Exchange Commission is looking into a possible conflict of interest related to transactions between Enron and partnerships formed by Andrew Fastow. Two days later, Enron ousts Fastow.
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Lay informs Treasury Secretary Paul O'Neill of Enron's financial problems. O'Neill's spokeswoman Michele Davis said Treasury officials could detect no ripple effects in financial markets from Enron's troubles and O'Neill did nothing to help the company.
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Lay talks by telephone with Commerce Secretary Don Evans. A Commerce spokesman says Lay asked Evans if he could do anything to influence a decision by Moody's Investors Service to downgrade Enron's credit rating. Evans deems such an action inappropriate.
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Enron announces the SEC inquiry has been upgraded to a formal investigation. The next day, J.P. Morgan and Salomon Smith Barney agree to provide an additional $1 billion in secured credit.
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Enron files with SEC saying it overstated earnings dating back to 1997 by almost $600 million. The next day, Enron agrees to be bought by Dynegy Inc. for some $9 billion in stock. As part of the deal, Chevron Texaco agrees to inject $1.5 billion in fresh capital immediately.
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In a filing with regulators, Enron says it is trying to restructure a $690 million obligation for Nov. 27. The company then negotiates an extension of the loan. Concerns about Enron's ability to weather the crisis drive stock down nearly 23 percent to its lowest level in nearly 10 years.
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Enron's stock hits a new low of $3.76 as Enron and Dynegy negotiate to keep their deal on track.
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Major credit rating agencies downgrade Enron's bonds to "junk" status. Dynegy terminates its agreement to buy Enron. Enron temporarily suspends all payments, other than those necessary to maintain core operations. Enron stock hits a new low of 70 cents.
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Enron files for Chapter 11 bankruptcy and hits Dynegy with a $10 billion breach of contract lawsuit. Enron fires 4,000 employees the next day.
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Congressional hearings begin on Enron's collapse, while the company announces plans to raise up to $6 billion by selling assets.
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Executives from accounting firm Arthur Andersen tell Congress they warned Enron about "possible illegal acts" after the energy trading giant failed to provide crucial data about its finances to Andersen.
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Tearful Enron employees and investors tell a congressional committee how they lost their life savings in the collapse.
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The Justice Department opens a criminal investigation of Enron.
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Andersen admits disposing or deleting documents relating to Enron's audit. President Bush, who received major campaign contributions from Enron, orders government reviews. Attorney General John Ashcroft, who received Senate campaign funds from Enron, leaves the investigation.
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Click here to read about the fall of Enron and its top executives.
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Credits:
CBS News, Associated Press
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