organizational announcement as things begin to calm down somewhat after events of last week , we wanted to update all employees of certain organizational and personnel changes that have occurred recently .
organizational matters
the creditors ' committee was formed last week by the united states trustee . this committee is comprised of 15 individuals representing various creditor groups including : banks , bondholders , insurance companies and employees . the creditors ' committee will be the key point of contact as we reorganize the company and emerge from chapter 11 . initially , they will send financial advisors to our offices to monitor any asset liquidations as well as review our cash flow projections . ultimately , they will be responsible for approving our reorganization plan as to which assets or businesses we sell and which ones we retain .
from an enron perspective , the plans for reorganization have already begun . overhead has been reduced dramatically , certain employee retention programs have been put in place and a wider retention program is currently being developed . we hope to share the wider retention program with you in the very near future . furthermore , detail cash flow projections are in their final stages of preparation and will be reviewed by senior management this week . this will be the critical first step in formulating our reorganization strategy to emerge from chapter 11 as a healthy company .
by now , you must have heard of " netco . " this company was formed as a means to maximize the value of enron ' s most valuable business , the wholesale energy business . certain enron north america employees have been assigned to netco to re - build the north american gas and power business under different ownership . we will be filing with the bankruptcy court this week proposed auction procedures to allow bidders to bid for netco . it is our expectation that enron would retain a 49 percent ( or perhaps less ) non - controlling interest in netco . the netco employees would become employees of the winning bidder . we anticipate this process to reach closure sometime in january .
as for the remaining businesses of enron , they are all under review as to which ones will be proposed for sale and which ones will be proposed for retention . this review process will take time as it will require approval of the creditors ' committee . we will update you periodically on our process .
personnel matters
as a result of our current situation , we have made many personnel changes over the past several months to maximize the value of the organization .
office of the chairman - enron corp
jeff mcmahon , executive vice president and chief financial officer , has been added to the office of the chairman of enron corp along with ken lay and greg whalley . among other things , jeff has been working on the business plan for reorganization in chapter 11 and is the primary contact with the newly formed creditor ' s committee .
treasurer - enron corp
ray bowen was elected to executive vice president , finance and treasurer of enron corp recently . in this role , ray is responsible for all finance activities of enron corp . ray also has the lead role in managing the cash activities of the company on a day to day basis .
corporate development
mark muller has been appointed executive vice president - corporate development . in this role , mark will work with enron ' s various business units on all asset disposals , which will be a key element in enron ' s reorganization plan and value preservation .
wholesale services
the wholesale services group has been reorganized under the leadership of jim fallon . included in this group are the following businesses , ena , ebs , eim and egm . as part of the chapter 11 reorganization , efforts in these businesses will be directed at maximizing value for the creditors as well as determining which businesses or assets will be part of enron ' s reorganization plan .
management committee departures
unfortunately , due to the current financial condition of the company , the following members of the management committee have left the company or will be leaving the company by the end of december :
michael brown
mark frevert
steve kean
mike mcconnell
jeff shankman
additionally , john lavorato and louise kitchen have resigned from the management committee to arrange for the joint venture energy activities of netco .
we know as employees the uncertainty surrounding the future of the company is unsettling . unfortunately , that aspect will not change in the near term . we ask for everyone ' s patience and continued support as we move forward through the chapter 11 process . we are committed to reorganizing into a strong company once again and will need the help of all the employees to achieve that goal .
organizational announcement
as things begin to calm down somewhat after events of last week , we wanted to update all employees of certain organizational and personnel changes that have occurred recently .
organizational matters
the creditors ' committee was formed last week by the united states trustee . this committee is comprised of 15 individuals representing various creditor groups including : banks , bondholders , insurance companies and employees . the creditors ' committee will be the key point of contact as we reorganize the company and emerge from chapter 11 . initially , they will send financial advisors to our offices to monitor any asset liquidations as well as review our cash flow projections . ultimately , they will be responsible for approving our reorganization plan as to which assets or businesses we sell and which ones we retain .
from an enron perspective , the plans for reorganization have already begun . overhead has been reduced dramatically , certain employee retention programs have been put in place and a wider retention program is currently being developed . we hope to share the wider retention program with you in the very near future . furthermore , detail cash flow projections are in their final stages of preparation and will be reviewed by senior management this week . this will be the critical first step in formulating our reorganization strategy to emerge from chapter 11 as a healthy company .
by now , you must have heard of " netco . " this company was formed as a means to maximize the value of enron ' s most valuable business , the wholesale energy business . certain enron north america employees have been assigned to netco to re - build the north american gas and power business under different ownership . we will be filing with the bankruptcy court this week proposed auction procedures to allow bidders to bid for netco . it is our expectation that enron would retain a 49 percent ( or perhaps less ) non - controlling interest in netco . the netco employees would become employees of the winning bidder . we anticipate this process to reach closure sometime in january .
as for the remaining businesses of enron , they are all under review as to which ones will be proposed for sale and which ones will be proposed for retention . this review process will take time as it will require approval of the creditors ' committee . we will update you periodically on our process .
personnel matters
as a result of our current situation , we have made many personnel changes over the past several months to maximize the value of the organization .
office of the chairman - enron corp
jeff mcmahon , executive vice president and chief financial officer , has been added to the office of the chairman of enron corp along with ken lay and greg whalley . among other things , jeff has been working on the business plan for reorganization in chapter 11 and is the primary contact with the newly formed creditor ' s committee .
treasurer - enron corp
ray bowen was elected to executive vice president , finance and treasurer of enron corp recently . in this role , ray is responsible for all finance activities of enron corp . ray also has the lead role in managing the cash activities of the company on a day to day basis .
corporate development
mark muller has been appointed executive vice president - corporate development . in this role , mark will work with enron ' s various business units on all asset disposals , which will be a key element in enron ' s reorganization plan and value preservation .
wholesale services
the wholesale services group has been reorganized under the leadership of jim fallon . included in this group are the following businesses , ena , ebs , eim and egm . as part of the chapter 11 reorganization , efforts in these businesses will be directed at maximizing value for the creditors as well as determining which businesses or assets will be part of enron ' s reorganization plan .
management committee departures
unfortunately , due to the current financial condition of the company , the following members of the management committee have left the company or will be leaving the company by the end of december :
michael brown
mark frevert
steve kean
mike mcconnell
jeff shankman
additionally , john lavorato and louise kitchen have resigned from the management committee to arrange for the joint venture energy activities of netco .
we know as employees the uncertainty surrounding the future of the company is unsettling . unfortunately , that aspect will not change in the near term . we ask for everyone ' s patience and continued support as we move forward through the chapter 11 process . we are committed to reorganizing into a strong company once again and will need the help of all the employees to achieve that goal .