Kenneth L. Lay, 59, the chairman and CEO of Enron Corp., resigned on Wednesday night. Although expected by many, Lay’s departure as captain of the company he created in 1985 seemed to signal a new beginning for the now bankrupt energy trader. Enron has begun the search for a restructuring specialist who can move the company from insolvency into the black once again.

“This was a decision the Board and I reached in cooperation with our Creditors’ Committee,” Lay said in a statement. There had been rumors that creditors owned by Enron wanted Lay ousted. Earlier this week, a group of creditors led by Wiser Oil Co. had asked Judge Arthur Gonzalez of the New York Bankruptcy Court to appoint a trustee to run Enron’s North American operations. The board indicated it would “promptly” begin a search for a new chairman.

Although Lay will no longer be an employee, he will remain on the board of directors, and as a result, will be protected from lawsuits because Enron provides legal and liability insurance for its officers. As chairman, Lay had received about $31.5 million a year for the past eight years. In 1999, he realized option gains on his stock holdings of $44 million, and last year, Lay realized option gains of $123 million.

“I want to see Enron survive,” Lay said in a statement. “And for that to happen, we need someone at the helm who can focus 100% of his efforts on reorganizing the company. Unfortunately, with the multiple inquiries and investigations that currently require much of my time, it is becoming increasingly difficult to concentrate fully on what is most important to Enron’s stakeholders.”

Until a replacement is found, Enron CFO Jeff McMahon, who replaced Andrew Fastow in November, and Stan Horton, chairman and CEO of Enron Global Services, will run the company.

Lay founded Enron in 1985, and with the exception of a six-month period in 2001 when he relinquished the CEO title to Jeffrey Skilling (who resigned in August 2001), Lay has held both the chair and CEO positions since February 1986. Enron was formed by the merger of Houston Natural Gas and InterNorth Inc. in July 1985.

Before forming Enron, Lay was president of Continental Resources Co. (formerly Florida Gas Co.) and executive vice president of the Continental Group, the parent company of Continental Resources Co., before joining Transco Energy Co. in May 1981 as president and CEO. Lay joined Houston Natural Gas in June 1984 as chairman and CEO.

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