the CAMP ENRON Report


CAMP ENRON:
... gateway to the next Progressive Era?

Some say it's nothing but a train wreck ... roll in the big cranes, clear the track, see what the crew's been smoking. If I thought so, I'd not be writing this ... and if they thought so, they'd not be drumming so hard.


For a brief orientation, see this
Welcome to Camp Enron

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Camp Enron Archives
01/01/2002 - 02/01/2002 02/01/2002 - 03/01/2002 03/01/2002 - 04/01/2002 04/01/2002 - 05/01/2002 05/01/2002 - 06/01/2002 06/01/2002 - 07/01/2002 07/01/2002 - 08/01/2002 08/01/2002 - 09/01/2002 06/01/2003 - 07/01/2003

NOTE to READERS:
(2) All "major" articles of older material have now been imported, some with updates worth perusing. We'll keep it all on the main page for a while, will add a few loose pieces of history, will trim the main page and index the archives for convenience later.


OUR DEPARTMENTS:

the COGENT PROVOCATEUR:
free agent, loose cannon, pointy stick ... taking an imposing analytic toolkit out of the box, over the wall and into the street ... with callous disregard for accepted wisdom and standard English

reading the tea leaves from original angles, we've led with uncannily prescient takes on the federal surplus, the dotcom crash, the "Energy Crisis", the Afghan campaign, the federal deficit.

More where those came from ... stay tuned.


For brief orientation, see this
Welcome to CP


CAMP ENRON:
... gateway to the next Progressive Era?

For a brief orientation, see this
Welcome to Camp Enron

OTHER GOOD STUFF:
Many thanks to Tony Adragna and Will Vehrs, still shouting 'cross the Potomac at QuasiPundit. Early Camp Enron material can be found in QP's Dispatches department.
Thursday, April 04, 2002

 
--- Feeding Frenzy, Continued ---

Houston Chronicle has several pieces on fighting over the pieces

Enron backs out of retirement plan pact:
In February, the company signed an agreement ... to hire State Street and replace a committee of Enron executives -- some the target of government investigations -- that still oversees the plans. "At the outset, it was our goal to avoid any negative publicity" said Brian Rosen, an Enron bankruptcy lawyer. ... Rosen said Enron did not believe it should be "taxed" with the firm's fees.

The creditors committee agreed. ... "There's no justification to give such a gift to the retirement plans"
Retention bonuses still a bone of contention:
Enron's biggest creditors may have signed off on its request for a third round of retention bonuses, but others promise to fight it.

Creditors who want to cut their losses and liquidate ... claim that Enron has not shown it intends to file a reorganization plan ... New Chief Executive Stephen Cooper has said a reorganization will be built around pipeline and power generation units, but he has asked Gonzalez for another eight months to file a plan.
Political opponents press Texas A.G. (and Senate candidate) John Cornyn to recover unemployment funds
Although a U.S. Action news release called for a "possible suit against Enron for the funds lost by the Texas unemployment insurance fund due to layoffs," local AFL-CIO secretary treasurer Richard Shaw acknowledged that the best the fund could hope for was to be certified as a creditor and plead its case
Real business suffers from fake business's collapse
EOTT Energy Partners' units dropped 33 percent Wednesday after it said it won't make its first-quarter cash distribution because its cash flow has been hurt by Enron's bankruptcy ... its general partner is an Enron unit. ... markets and transports crude oil ... owns and operates an MTBE plant and has liquefied natural gas storage and pipelines. ... missed a Monday filing date for a 10-K report because it has been without an auditor since Feb. 5, when Arthur Andersen quit. The accounting firm didn't like an internal Enron report that blamed it partially for Enron's collapse.
EOTT is one of many "asset-heavy", i.e., goddamn real, remnants of the Enron empire ... not in bankruptcy but stuck in the muck just the same.

Interim CEO finally approved, questions remain
A U.S. bankruptcy judge approved the hiring of Stephen Cooper as Enron's chief executive offcer today ... JPMorgan and Citibank each participated in some of Enron's questionable partnerships, and having them lead investigations into the company's downfall was not in everyone's best interests [said a lawyer for Florida shareholders]
Several points of Cooper's contract had provoked controversy, including suspected conflicts of interest, contractual terms that avoided officer's liability, and doubts regarding the whole strategy of reorganization versus liquidation.

Editorial comment: It may be possible to reorg the Enron mountain into a viable business molehill, but what's the point? I suspect it's a vanity performance for Cooper, much like Volcker's vision of reorg'ing Andersen into a tiny model audit practice.

Enron goes deep looking for deep pockets
Four months after Enron filed a $10 billion lawsuit against Dynegy for backing out of a merger, the two are set to battle Friday over whether the case should be transferred to a Houston federal court. ... Going after Dynegy, regardless of the possibility of success, makes sense for Enron, Rapoport said. "They're looking for deep pockets"