Enron Scandal: Firger Between Houston Natural Gas And Intemorth
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Appendix 1
Enron scandal
Enron was formed by a merger between Houston Natural Gas and Intemorth. Houston’s Natural Gas’s CEO Kenneth Lay directed the merger of the two enterprises. Kenneth Lay was the CEO of Enron. Enron was formerly responsible for the distribution of electricity and gas in the United States. In the merger, Enron gained a large amount of debt, and provoke a deregulation and no more rights to its pipelines. The company had seek a way to make profits and cash flow. Kenneth Lay employed Jeffrey Skilling to work for Enron as an accountant. Skilling advised the practice of purchasing gas from a web of suppliers and retailing it to consumers at a fixed price with an agreement. Enron was interested in the development, construction and process of pipelines, power plants and other infrastructure worldwide. After just a year of processing, Enron associate with an enterprise named Spectrum Seven, a company whose chairman and CEO is the former president of the United States, George W.Bush. In 1999, Enron tried to develop their company by building the Azurix Corporation, a water utility company. Generally, the Azurix Corporation showed to be financially unsuccessful. The Azurix Corporation, due to their catastrophe to make an entry into the market, went under. By 2001, Enron declared plans to dissemble Azurix and liquidize the assets of the company.…show more content… Enron was known as “America’s Most Innovative Company” by Fortune magazine during 1996-2001. Enron had the ability to be on Fortune’s “100 Best Companies to work for In America” in 2000. The company’s upcoming success appeared to be bright and promising in the