![]() The report said a preliminary review by Cooper and other current Enron management showed that Enron counted the full value of some trades as revenue in 2001 when actual cash wouldn't be in hand for several years. The additional expected writedown of $8 billion to $10 billion is related to "mark-to-market" financing common with energy trading companies. The writedown would have no effect on assets that are not part of the company's bankruptcy case, like pipelines and power plants. ![]() The estimated $14 billion writedown in assets is likely attributed to the bankruptcy filing as well as overstated values of some assets "due to possible accounting errors and irregularities," the report said. ![]() "It also would be useful if it turns out it makes sense to liquidate, whether it's generated by examiner or Cooper himself," Hu said. Hu, a corporate and securities law professor at the University of Texas School of Law, said an assessment of Enron's true financial performance throughout 2001 could help Cooper guide a scaled-down version of the company out of bankruptcy. "We want to get the issues of the past behind this company as we meet with creditors on a global plan of moving forward." "We are disclosing what information we know today in an effort to restore financial credibility," Enron spokeswoman Karen Denne said Monday. The report said Cooper and other Enron executives will focus on Enron's reorganization and leave investigation of the company's financial past to an independent examiner to be appointed by U.S. The report, signed by restructuring specialist and interim chief executive Stephen Cooper, said Enron is bogged down with lawsuits, shrinking resources, numerous investigations into its finances and lacks an outside auditor to file comprehensive 2001 financial statements as previously intended. Bankruptcy Judge Arthur Gonzalez in New York, Enron said it may have to write down $8 billion to $10 billion relating to commodity and energy trading operations before its Dec. In a regulatory filing Monday with the Securities and Exchange Commission and U.S. Enron Corp.'s assets may lose another $14 billion in value in the fallout from its bankruptcy filing.
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