Business & Finance
Enron sued rival Dynegy Inc. for $10 billion, asserting the latter breached their Nov. 9 merger agreement. The suit came as Enron filed for protection from creditors in federal court in New York, one of history's largest corporate bankruptcies. The filings were expected after Enron's credit rating collapsed and Dynegy scuttled the proposed buyout. Enron listed just under $50 billion in assets, counting those of 13 subsidiaries. Two months ago, the total was about $90 billion. The filing showed $31.1 billion in liabilities. Dynegy's chief executive called the lawsuit "disingenuous." Enron, meanwhile, said an undetermined number of workers, mostly in Houston, its headquarters, would be laid off.
Ford was expected to announce layoffs of 600 hourly workers and an unspecific number of salaried employees as part of a restructuring plan to save hundreds of millions of dollars. The Detroit News reported that the automaker also plans to cut benefits for white-collar workers. Ford, which has been nagged by eroding sales and the ongoing Firestone tire crisis, announced separately in August that it would eliminate up to 5,000 salaried positions. Citing internal company documents, The Associated Press said Ford plans to forecast a $630 million fourth-quarter loss.
Thousands of Pratt & Whitney machinists hit the picket lines after rejecting a contract offer by the jet-engine maker that included a 10 percent pay raise over three years and $1,000 bonuses. The strike, its first since 1985, comes as the East Hartford, Conn., company tries to cope with a downturn in the aviation industry. The walkout also could affect its ability to supply the Air Force as military operations continue in Afghanistan, a spokesman said. Pratt & Whitney planned to reassign 2,000 salaried employees to union workers' jobs.