ENRON EVOKES CONCERN

City firms were at odds over how to react to the Enron scandal this week.Chris Perrin, director of risk at Clifford Chance, said the firm had set up a group to discover what lessons could be learnt from the world's biggest-ever bankruptcy.Mr Perrin said there was clearly now a heightened awareness within the firm of the types of transactions - involving debt restructuring offshore - which were a symptom of the Enron scandal, and that those transactions might now be viewed with more circumspection.Nigel Boardman, Slaughter and May's head of corporate, said his firm was not reviewing procedures, adding: 'UK companies have had little scope for pushing their debts off-balance sheet in this way.' Slaughters acted for Enron in 1999 over a proposed demutualisation of the International Petroleum Exchange.A Freshfields spokeswoman said the firm had acted for Enron in the past, and so could not comment.Meanwhile, the Law Society Council last week approved the principles behind a planned shake-up of the rules governing conflicts and confidentiality (see [2002] Gazette, 24 January, 1).

In the light of Enron, it will reconsider the plan prior to a final vote, which in turn will follow a consultation with the profession.Jeremy Fleming