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Joy Global, Inc. Message Board

  • arthur19572001 arthur19572001 Jan 29, 2002 8:18 AM Flag

    Enron/HPH

    Funny how Enron is getting so much attention. Beloit Corp lost 7,000 jobs worldwide in what looked just like Enron the way the stock of HPH tanked in the months before the fall. Employees lost thousands in 401K $. Excecutives got bonuses to not quit. Why was there no congressional investigation? The City of Beloit may soon unincorporate with proposed state budget cuts. I haven't heard anything about that happening to Houston, TX!

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    • There are a couple of reasons. First, HPH was only the 3rd largest bankruptcy in 1999, and relatively small potatoes. Second, Jeff Grade wasn't Clinton's friend and biggest financial supporter (although he probably wished he was).

      But most importantly, employees were released and allowed to sell stock from the 401(k) a couple of days before bankruptcy was declared. The stock was selling at $8/share when that happened. It wasn't $50, but it was a better deal than the Enron employees got.

      At the plant I worked at, I don't know of any employee who thought HPH could avoid bankruptcy after Grade got dumped. There was time to get out with something. HPH all but annnounced they were going to do it, so there was no surprise.

      Finally, when Fido finally sold the employees' shares before delisting, there were howls of anger on the HPH board of being forced to sell. If the company had forced employees to sell before bankruptcy, there would have been dozens of lawsuits stopping them.

 
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