In a speech to more than 1,000 employees in a Houston hotel which was also transmitted to Enron offices, he warned that existing stock would likely end up worthless, buried under claims he estimated at between 60-70 bln usd, but said could go as high as 100 bln.

"There was just an unbelievable amount of debt that was accumulated all around the company," he said, adding: "I just don't see how we ever get close to getting through the unsecured claims."

The report said Cooper told staff there would be more, "not insubstantial", layoffs ahead. The number of Enron employees world-wide has already fallen to 23,000 from about 31,000 prior to the company's Dec 2 filing for bankruptcy.

About the reorganized Enron as a far smaller producer and distributor of energy, Cooper said the new company would reach from Canada to South America, but focus primarily on markets in California, Florida and Brazil.

The WSJ said Cooper faces considerable obstacles to carrying out such a restructuring, which depends in part on regaining control of some assets that have already partially slipped out of Enron's control.

Cooper said during his speech that Enron is weighing an option to repurchase the Northern Natural Gas pipeline from Dynegy Inc, though he did not explain how it would finance such a move.

He also held out the possibility of regaining control of the Portland General Electric utility from Northwest Natural Gas Co, which he said has not yet closed on a purchase agreed to last fall.

"This is not a Chapter 7, which is liquidation, and it is not conceivable to me that it will ever become a Chapter 7," Cooper said.

By keeping a limited number of energy production and distribution assets intact, Cooper told employees, "over time, we could deliver (creditors) substantially more value" than through a piecemeal sale of assets. "I'm relatively confident that we can persuade them."

The report said Enron intends to present its restructuring plan to creditors in early May, after which it will attempt to secure their support, adding that Cooper said he had "absolutely no idea" when the plan would be filed with the bankruptcy court.

Asked by an employee about the likelihood that a competitor might try to buy all of Enron, he said, "at this time, it's close to zero. There's too much confusion and dust in the air," the report said.