How did Enron get from the most successful company in 2000 to the worst in 2001? Their aim was to keep on growing at the same magnificent rate as they did in the years before. To manage that they invested in new projects with borrowed money. The company created partnerships to make their earnings look more impressive, in that way Enron was able to keep $600 million in debt off the books. When the first signs off failure appeared, the staff announced an even bigger stock growth while selling their own stocks. When the dishonorable truth was revealed the stocks nosedived. Enron was no longer capable to repay its creditors and was declared bankrupted.
Source: http://www.articleclick.com/Article/What-happened-at-Enron-/932817
Stijn Casneuf
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