Acting Enron chief executive Mr Stephen Cooper has told his staff that the company could face claims by creditors and shareholders of up to $100 billion, the Wall Street Journalreported today.
In his first address to staff at a Houston hotel, Mr Cooper tried to assure staff the company wouldn’t completely disintegrate but acknowledged layoffs were inevitable.
The Journalreports Mr Cooper warned that existing Enron stock would likely end up worthless, buried under claims he estimated at between $60 billion and $70 billion but that could go as high as $100 billion.
"There was just an unbelievable amount of debt that was accumulated all around the company," he said. "I just don't see how we ever get close to getting through the unsecured claims".
Mr Cooper said he envisaged the reorganised Enron as a far smaller producer and distributor of energy focused primarily on markets in California, Florida and Brazil.
Asked by an employee about the likelihood that a competitor might try to buy all of Enron, he said, "At this time, it's close to zero. There's too much confusion and dust in the air," the report said.