US congressional panels have begun an inquiry into Enron's financial disaster, as the energy trader's European arm sought creditor protection.
Legislators from both major US parties called for inquiries into the finances of Enron, which had billed itself as "The World's Leading Company". As recently as February it had been a bulletproof Wall Street favourite.
The company is now working with its lawyers and advisers to file for bankruptcy proceedings in a US court and is likely to do so early next week, a source said.
Four of Australia's biggest banks said today they had Enron liabilities ranging from about $50 million to $100 million.
NAB, Australia's largest bank and parent of National Irish Bank, said the Enron liability represented "less than 0.1 per cent" of its total international loan portfolio.
The company's once-lucrative Internet trading platform, EnronOnline, reopened Thursday for the sole purpose of allowing traders to unwind their positions with Enron and manage their credit, a spokesman said.
If Enron files for bankruptcy, it would be the largest in US history. Enron said its assets as of September 30th were $61.8 billion, easily dwarfing the $35.9 billion in assets Texaco had when it filed for bankruptcy in April 1987.
Enron shares resumed their relentless plunge, closing down 41 per cent at 36 cents on the New York Stock Exchange, a far cry from their peak of $90.56 in August 2000.
In little more than a year, Enron's market capitalisation has dropped to about $268 million from almost $80 billion at its peak.