Enron Pledges Cooperation with SEC Request
Enron Corp. (Houston, TX) announced that the Securities and Exchange Commission (SEC) has requested that Enron voluntarily provide information regarding certain related party transactions due to concerns regarding the company’s relationship with two limited partnerships that were run, until recently, by Enron's CFO, Andrew Fastow.
The two partnerships, LJM Cayman LP and the larger LJM2 Co-Investment LP, have engaged in complex hedging transactions involving company assets worth hundreds of millions of dollars and millions of Enron shares. LJM was set up in June 1999 for energy-related investments, and LJM2 in December 1999 for energy- and communication-related investments.
"We welcome this request,” said Kenneth Lay, Enron chairman and CEO. “We will cooperate fully with the SEC and look forward to the opportunity to put any concern about these transactions to rest. In the meantime, we will continue to focus on our core businesses and on serving our customers around the world.”