New Enron Chief Faces Toughest Job in America

Enron today named Stephen Cooper as its new chief executive, replacing Kenneth Lay, who resigned last week from the bankrupt US energy giant.

Mr Cooper will take over one of the toughest jobs in corporate America as the disgraced US company tries to restructure itself while facing myriad federal and congressional investigations.

Mr Cooper is managing principal of the New York-based reorganisation adviser Zolfo Cooper. The company's long list of clients has included Federated Stores, instant film maker Polaroid, Hawaiian retailer Liberty House and Pegasus Gold.

"Our focus is on the future of Enron. With more than 19,000 employees worldwide, Enron has real businesses with real value," Mr Cooper said. "We will work closely with the board of directors, management, and the creditors committee to develop a reorganisation plan to maximise value for the company's stakeholders."

In other staff changes, Enron named members of the office of the chief executive, which will include Mr Cooper. Jeff McMahon, formerly chief financial officer, was named president and chief operating officer. Ray Bowen, formerly Enron treasurer, becomes executive vice president and chief financial officer.

Mr Lay, who transformed Enron from an obscure Texas gas pipeline company into America's seventh largest corporation, was forced out last week.

He is scheduled to testify before Congress next week amid a barrage of civil suits accusing him of misleading shareholders, employees and the government about Enron's financial health.