Enron chief Kenneth Lay quits

Washington, January 24: | Updated: Jan 25 2002, 05:30am hrs
Kenneth L Lay, the embattled chairman and chief executive officer of Enron Corp, has resigned from the company, but will remain on the companys board.

I want to see Enron survive, and for that to happen we need someone at the helm, who can focus his hundred per cent efforts on reorganising the company and preserving value for our creditors and hard-working employees, Mr Lay (59) said in a statement released by Enron on Wednesday night.

Mr Lay founded the company in 1986 and led it grow onto one of the largest in America and then saw it collapse.

He will face Congressional hearings on the unconventional, possibly illegal, methods betrayal of its investors and employees as it tried to hide its losses and debts through unknown subsidiaries and partnerships, the friendships and political influence he built through huge political donations to republicans, including the US President George W Bush, and democrats Enron followed.

DPC contract is a sanctity issue: Envoy

NEW DELHI: Is Enron finally bad news enough for the Bush presidency Bad enough for his administration to stop seeing the companys failed contract in India as a five letter word in the Indo-US relationship

US ambassador Robert D Blackwill side-steps the first part, but his answer sets at rest any misplaced hope that the Enron ghost in India will miraculously disappear once the parent company drowns in troubles of its own creation.

His resignation, on the eve of two Congressional hearings, had been sought by a committee of major creditors, who hold veto power over Enrons chapter 11 bankruptcy, which allows the company to remain in being while it tries to reorganise into a viable entity.

The inquiries will cover not only Enrons methods, but also the failure of Arthur Andersen, one of the big five auditing and accounting firms in the United States, to reflect the true state of the company in the public records signed by the auditors.

PTI