Enron president resigns

Enron President Jeffrey McMahon says he will resign as of June 1.

He complained two years ago about impropriety of financial partnerships that helped fuel the US energy giant's downfall.

Mr McMahon claims his resignation is necessary to help ensure Enron's successful reorganisation into a mover of electricity and natural gas.

"I strongly believe that the best course for the Enron estate, its creditors and its employees is to use our core pipeline and electricity assets to create a new company apart from the litigation and diversions of bankruptcy. For that effort to have every chance of success, it became clear that outside leadership is required."

Stephen Cooper, a restructuring specialist hired in January as Enron's interim chief executive officer, said Mr McMahon's position will remain open until an outside successor is found.

"Regrettably, I support Jeff's decision," Mr Cooper said. "Last fall, during tremendous turmoil within the organization, Jeff stepped up as a true leader."

Mr McMahon accepted two promotions since Enron its descent into bankruptcy last year that left thousands jobless.

He is also one of the defendants in two securities fraud lawsuits filed in Houston on behalf of investors.

Mr McMahon and other current and former Enron executives are accused in the lawsuits of getting rich on Enron stock sales when they allegedly knew the company was on the verge of collapsing.