Enron : The United States Bankruptcy Code

1857 Words Apr 12th, 2016 8 Pages
In 2001 Enron was famous throughout the business world and was known as an technology powerhouse, and a corporation with absolutely no fear. The unpredicted fall of Enron in 2001 shattered the lives of their employees and the people who believed that their greatness was genuine. It is said the fall of Enron was followed by some revelations on how they may have manipulated their way to the top.

Enron was at one time America 's seventh largest corporation. Enron fooled the world by portraying to be a steady company with good revenue but at the end we all seen that was not the case. Surprisingly large parts of Enron profit were made of paper. This was made possible due to traders and executives who were corrupt. Having deep debt and hiding losses gave the company big problems and in 2001 Enron declared bankruptcy under Chapter 11 of the United States Bankruptcy code. Many factors affected Enron 's surge to the top and its sudden fall.

In the early 1990 's the United States congress approved a legislation that allowed the sale of natural gas. This major decision in the energy market gave Enron the opportunity to sell energy at higher prices, which lead to greater revenue. This was the start of Enron 's journey from an energy company to a trading company. The focus went from energy markets to finding new ways of earning money. This was very common among companies like Enron. Large investments were made to expand its business and to open itself for new markets. Enron was named…
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