Resigns

Enron Corp. is in shreds, literally and figuratively, with a week marked by dramatic accusations, the founder quietly resigning, and a former vice chairman tragically dying from an apparent self-inflicted gunshot wound. As Congress began its intense investigations of the company and its auditor, Arthur Andersen, there only was one tiny bit of good news for the company and its supporters. The U.S. Bankruptcy Court in New York approved a deal for UBS Warburg to pick up its quickly fading wholesale energy trading unit.

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.

The Enron flu continues to spread, this time, taking down a former executive with the company. Texas Public Utilities Commission (PUC) Chairman Max Yzaguirre, once CEO of Enron de Mexico, resigned Thursday following months of controversy surrounding his appointment. Yzaguirre was appointed to the top state regulator post last June, but has been under scrutiny since his appointment; he has been criticized by several groups because of perceived conflict-of-interest charges (see Daily GPI, June 15, 2001).

Canada’s largest oil and gas producer, PanCanadian Energy Corp., announced third quarter earnings last week, but investors were just as focused on the startling news that David Tuer, the 52-year-old president and CEO since 1994, had resigned Friday citing “personal reasons.” Tuer, who joined the company in 1988, had once been assistant deputy minister of energy in the Alberta provincial government, and was considered instrumental in leading the company toward booming production numbers. He also had been enthusiastic about PanCanadian’s spin-off from Canadian Pacific Ltd. last month.

Canada’s largest oil and gas producer, PanCanadian Energy Corp., announced third quarter earnings on Monday, but investors were just as focused on the startling news that David Tuer, the 52-year-old president and CEO since 1994, had resigned on Friday citing “personal reasons.” Tuer, who joined the company in 1988, had once been assistant deputy minister of energy in the Alberta provincial government, and was considered instrumental in leading the company toward booming production numbers. He also had been enthusiastic about PanCanadian’s spin-off from Canadian Pacific Ltd. last month.

Enron Corp. stock last week saw some of its worst days of trading in more than a year following the news that President and CEO Jeffrey K. Skilling, who was credited with much of the energy giant’s successes over the past decade, had resigned. Before the week ended, Chairman Kenneth L. Lay had called a company-wide meeting to assure employees that the company remained on solid financial footing, while senior management officials met with financial analysts in New York to convince them that no other surprises lay ahead.

Enron Corp. said its board has accepted the resignation of Jeffrey K. Skilling, CEO and president. Kenneth L. Lay, currently chairman, will assume the additional responsibilities of president and resume his function as CEO. He has agreed to extend his employment agreement with the company through the end of 2005 to ensure a smooth transition. Skilling will continue to serve as a consultant to Enron and its board.

The vice chairman and COO of Enron Corp.’s international divisionhas resigned, two months after the chair and CEO of the division wasapparently forced out. Joseph W. Sutton will leave Enron Nov. 1 topursue other opportunities, said the company. His boss, Rebecca Mark,resigned in August (see Daily GPI, Aug. 28).

After five years as head of one of Canada’s largest energy companies, George Watson submitted his resignation to TransCanada’s board of directors last week citing “personal reasons.” The resignation, which becomes effective July 31, comes just weeks before the company plans to announce a structural shake-up designed to support its strategic direction. No details of the reorganization are being divulged at this time, a company spokesman said.