Several Enron divisions have begun to cancel their PR contracts as a result of the company's ill-fated merger with Dynegy.

Don Middleberg, whose New York-based PR firm handled Enron Credit, said he got a letter on Friday (Nov. 30) saying the retainer contract has been terminated.

"Fortunately for us, their account was current because they were good about paying their bills," said Middleberg, who noted the division had previously reduced their retainer fees.

The energy trader, which is in financial trouble, is firing 4,000 employees in its Houston headquarters because it can no longer afford to pay them. It has already pink-slipped 1,100 employees in Great BritaIn.

One of Enron's lawyers told USA Today that all of Enron's divisions are expected to seek Chapter 11 bankruptcy protection in the coming days and weeks. So far, 15 of the company's business units have filed Chapter 11.

Diane Bazelides is Enron's managing director of marketing and PR and Mark Palmer is VP of PR.

Other PR firms used by Enron in the U.S. include the Hirst Co., Albuquerque; Bates Churchill, Houston, and Bitner.com, Ft. Lauderdale, Fla.

"We are on hiatus, but hope to resume work for Enron once the company reorganizes," said Gary Bitner, CEO of Bitner.com.

John Cordova, president of the Hirst Co., in Albuquerque, said his firm, which has handled Enron Transportation and Storage, based in Omaha, Nebr., for the past two years, has not gotten a cancellation notice.

The agency, which has a handshake agreement, is paid $5,000 a year to do media monitoring and community relations for the division, which operates a pipeline across New Mexico.

He said it will continue to do the work until told to stop.