Administrators appointed to run Enron's European offshoots
PricewaterhouseCoopers has been appointed administrators to Enron's European operations.
The appointment of the accountancy firm follows the credit-downgrading of the US energy giant yesterday, and the impact that had on its ability to continue to trade.
A multi-billion pound rescue bid for the seventh-largest US company in terms of revenue was terminated by rival firm Dynergy.
Enron employs 3,700 workers in the UK, including 1,400 at Wessex Water and about 900 at three power stations on Teesside. It also employs a further 5,000 people across Europe.
PricewaterhouseCoopers has issued a statement saying: "Inevitably, job losses are expected."
Teesside power station and the utilities and service businesses at the Wilton chemical complex are not included in the administration order.
Tony Lomas, one of four PwC administrators, says there is already "very serious interest" in Enron's metals business.
"Negotiations are expected to lead to a successful deal in the near term," Mr Lomas says.
"The Enron group built an extraordinarily complex network of integrated businesses, and this will take some time for the administrators to work through," he states.
"Our primary focus will be on the large physical assets and trading position of the group."
