Chewco

From Free net encyclopedia

Chewco was a company associated with Enron, which was largely involved in the bankruptcy of that company. It was named after the Star Wars character Chewbacca, as a reference to the acronym JEDI for its Joint Energy Development Investment project.

Enron created Chewco as a partnership which would help keep the JEDI project off of its books. Enron wanted to keep JEDI afloat, but it needed a partner to take at least a 3% stake, or the partnership's results would have to be included in Enron's financial statements. This would hurt Enron's results by forcing it to carry more debt on its books. Chewco was created to be that partner.

Chewco was, in effect, financed by Enron, so JEDI didn't meet the 3% rule, according to SEC filings.

External link

• http://www.pbs.org/newshour/bb/business/enron/player9.html

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