Jeffrey McMahon, president and chief operating officer of Enron, the bankrupt energy trader, resigned effective June 1. Mr McMahon, who confronted senior executives about improper accounting practices that led to Enron's collapse, said he was standing aside to aid the company's shot at revival.

"I believe that making room for new leadership before we announce the plan for the new company is best for Enron's stakeholders and for me," Mr McMahon said in a statement released by Enron.

Enron's creditors have been calling for a break with the old leadership ahead of the company's restructuring. Stephen Cooper, who is acting as interim chief executive, said Mr McMahon would not be replaced until the restructuring is rolled out.

In the wake of Enron's collapse, Mr McMahon emerged as a key witness in lawmakers' investigations of the debacle, contradicting the assertion of Jeffrey Skilling, former Enron chief executive, that he was ignorant of alleged improper accounting manoeuvres that kept billions of dollars in debt off Enron's balance sheet.

Mr McMahon told investigators he warned Mr Skilling but was brushed aside. The conflicts between Mr McMahon's and Mr Skilling's testimonies centred on a meeting in which Mr McMahon said he told Mr Skilling he was in an untenable position and that the company was "going down the tubes". Mr Skilling said he remembered the conversation as being about Mr McMahon's compensation.

Mr McMahon became Enron's chief financial officer in October, following the resignation of Andrew Fastow, who set up some of the off-balance sheet partnerships that have been the subject of scrutiny. He became president and COO in January.

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