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Pastimes : Is a Real Estate Downturn Coming? -- Ignore unavailable to you. Want to Upgrade?

To: Tadsamillionaire who wrote (76)	11/30/2001 1:53:46 PM
From: maceng2	Respond to of 91

LOL. My insurance co has great plans for my future employment -g- I hear the IMF is arranging that whole counties can declare bankruptcy now. How handy, this downturn should be peach! This recent debacle is just mind boggling. I suppose there is no other mis investments problems out there -s- news.ft.com Enron heading for largest ever US bankruptcy By Robert Clow and Andrew Hill in New York and Sheila McNulty in Houston Published: November 29 2001 19:37 \| Last Updated: November 30 2001 17:34 =========================================================== Enron, the crippled energy trader, is likely to file for Chapter 11 protection by Monday in what would be the largest ever US bankruptcy. The bulk of Enron's European trading operations were separately put into administration under PwC. But US bankers are searching for ways to ring-fence the core US trading business, to allow it to continue operating while the group is under bankruptcy protection. According to one person close to the talks, Enron has 100,000 trades outstanding, many of which will have to be unwound. The jobs of many of the company's 6,800 European workers are expected to be cut. At least three potential trade buyers have been identified for Enron Metals bought last year for £300m cash by Enron. Bankers were on Thursday assessing the value of the group's other assets, including Wessex Water in the UK and its share in a gas fired power station in north east England. Enron was pushed to the brink of ignominious failure on Wednesday after credit rating agencies downgraded its debt, and Dynegy, a smaller rival, pulled out of a $9.4bn (E10.5bn) rescue bid. Creditors were on Thursday understood to be discussing interim financing for Enron. Investors and bank creditors are unanimous in predicting that Enron will file for Chapter 11 bankruptcy protection in the US. A Chapter 11 bankruptcy filing is intended to protect a company from its creditors while it reorganises before re-emerging as a debt-free business. John Olson, vice-president of research at Sanders Morris Harris, a Texas-based investment bank, said: "Enron can rise and fight again if it can get the appropriate debtor-in-possession financing, $2bn or $3bn worth. If not, Enron investors will simply get a handful of dust." Enron declined to confirm the talks. The Enron debacle stirred up controversy in Washington, with Tom Daschle, Democratic Senate leader, saying it raised "some very serious questions".