Sources: Enron Preparing Bankruptcy Filing

Two sources familiar with the troubled energy giant's plans say Enron (ENE Quote) is preparing to seek protection under Chapter 11 of the U.S. Bankruptcy Code. The company's petition could be filed as early as tonight to a federal bankruptcy judge.

A third source who also is privy to Enron's legal strategy says the company was preparing a bankruptcy filing even before Wednesday's credit downgrade and the cancellation of its pending merger with Dynegy (DYN Quote). That source said Wednesday's news accelerated Enron's bankruptcy plans.

Enron officials did not return repeated calls for comment. ...