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Enron : Climax of executive greed and deception
Page entitled :
Ken Lay and the inception of Enron
Content of this page is about :
How Ken Lay edged out Sam Segnar after the merger of HNG with InterNorth,
became CEO, renamed the corporation Enron and mastered debt, using its
employees pensions and Michael Millken
Extract :
... Enron, Ken Lay had to deal with the immediate challenge to reduce debt,
which had reached $4,3 billion and due to the high interest rates prevailing
in the 1980s, weighed heavily on the corporation’s earnings and cash flow.
Another challenge was the buyback of Irwin Jacobs stake in the company.
Unable to finance the $357 million greenmail transaction otherwise, Ken Lay
borrowed $230 million from Enron’s employee pension fund and turned to
Michael Milken of Drexel Burnham Lambert ...
…
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