THE US-based Enron Corporation, once one of the world's largest energy traders, is continuing to slide towards bankruptcy.

The corporation, which employs more than 900 staff on Teesside, split between Enron Teesside Operations Limited (Etol) and Enron Power Operations Limited (Epol), has seen its value plummet since it was revealed that some of its executives had been involved in off-the-books business deals.

Enron revealed that partnerships run by its executives had allowed it to keep losses off its books and enabled the executives to profit from the arrangements. The partnerships are now under investigation by the Securities and Exchange Commission in the US.

Enron has acknowledged that it overstated profits by more than £400m over the past four years. The company, which had a market value of £66bn last year, is now worth just £360m.

Earlier this week, Dynergy Inc pulled out of a £6.8bn deal to take over the ailing corporation.

Analysts believe the seventh largest US company faces almost certain bankruptcy. It would be the largest bankruptcy in US corporate history.

Analysts blamed the company's fall on a combination of arrogance and secrecy. "They didn't explain things," said Morgan Stanley Dean Witter analyst Jim McAuliffe. "They are very cocky and self-assured."

Yesterday, PriceWaterhouseCoopers were appointed as administrators for the European holding company of the Enron group, and some of its operating companies.

Job losses were expected, it said in a statement.

Tony Lomas, one of the joint administrators, said: "The Enron group built an extraordinarily complex network of integrated businesses and this will take some time for the administrators to work through. Our primary focus will be on the large physical assets and trading position of the group."

But the administration does not cover the Teesside Power station and the Wilton Utilities business, giving rise to speculation that one, or all four of the regional electricity companies, including Northern Electric, which has a 50 per cent stake in the power station, could be preparing to take over the operation.

Union leaders are believed to be seeking urgent talks with the company about the future of the Teesside jobs, part of a UK workforce of 3,700 and a 5,000-strong workforce across Europe.

As well as operations on Teesside, Enron owns Wessex Water, which employs 1,400 staff and services millions of customers in Wiltshire, Dorset, Somerset, Hampshire, Devon and Gloucester.

An official of Unison said the union was seeking urgent talks with the company to find out if there would be any immediate effect on jobs.

Steve Bloomfield, national officer of Unison, said: "My main message is to call on the Government to take immediate steps to protect the interests of the public, and from our point of view the employees of Wessex Water."

Water watchdog Ofwat said it had been assured it was "business as usual" for services delivered by Wessex Water, so customers would see no changes in service.

Enron, which was formed in 1985 and has 20,000 employees, was once the world's top buyer and seller of natural gas and the largest electricity marketer in the US. It also marketed coal, pulp, paper, plastics, metals and fibre-optic bandwidth.

Epol began life on Teesside in 1992 with the building of the power plant. Etol was formed in 1998 when ICI sold its Teesside Utilities business at Wilton to Enron for £300m.