John Clifford Baxter, a former Enron vice chairman, has been found dead in a car from an apparent gunshot wound. A note was found nearby, police in Houston said.

The death of Mr Baxter, who resigned his job in May, came the day after Arthur Andersen executives testified that more of its employees destroyed records than previously disclosed.

Mr Baxter, who joined the company in 1991, continued to work as consultant for company after his resignation. At the time, the company said Mr Baxter was resigning to spend more time with his family. But he is known to have been concerned about the nature of financial transactions being undertaken by Enron ahead of its collapse, according to Sherron Wilkins, Mr Baxter's whistleblowing Enron colleague.

Meanwhile, Enron is close to appointing a corporate turnround specialist to run it as it attempts to preserve some value in its remaining businesses.

Advisers and creditors to Enron are understood to be in advanced negotiations with two candidates about the post. An announcement is expected in the next week.

The executive would formally replace Kenneth Lay, who resigned as chairman and chief executive on Wednesday evening following discussions with the creditors' committee.

Mr Lay said the many investigations and lawsuits sparked by Enron's collapse were taking up too much time to allow him to concentrate on running the business.

According to people close to the negotiations, the two candidates are executives with extensive experience of managing troubled companies, although neither is a household name.

The US bankruptcy process has spawned a breed of executives who specialise in managing troubled companies while they are in Chapter 11 bankruptcy. These "company doctors" seek to return the groups to health and hand them on to permanent chief executives.

Enron is also understood to be seeking an executive from the energy industry who would become chairman and chief executive once the company emerges from bankruptcy. This process is at an early stage.

The turnround specialist appointed to run Enron will be taking on one of the most challenging jobs in corporate America.

Enron's rapid collapse has left customers and suppliers in limbo, while many remaining employees have lost much of their savings. The executive will also have to manage the raft of lawsuits launched against the company. These are expected to take years to resolve.

Another challenge is the relatively modest portfolio of businesses left for the executive to manage. The company has sold its energy trading operations to UBS, the investment bank, and is selling many of its overseas investments while closing down other start-up ventures.

Meanwhile Dynegy, the rival energy group, has a claim on Enron's gas pipelines, which have also been used to secure a loan from JP Morgan and Citigroup.

However, headhunters still reckon the job has appeal. "The worse it is, the better it gets," says Russell Reynolds, chairman and chief executive of The Directorship Search Group. "If somebody comes in from the outside they have no baggage. They can only look good."

Any turnround specialist would be likely to command a huge pay package. Although any compensation would have to be approved by the bankruptcy court, executives can generally command large salaries and the promise of even larger bonuses in return for their services.

Mr Lay's resignation means there are now no current Enron executives still on the company's board.

Jeffrey Skilling, former chief executive, and Andrew Fastow, former chief financial officer, have already resigned.