But that answer largely begs the question of why the company was downgraded? Because Enron’s total indebtedness was determined to be $38 billion, not $13 billion. Why was the debt now, suddenly, so high? Because much of the debt which had been classified as off-balance sheet was now reclassified to on-balance sheet. Why the reclassification? Because many of the special purpose entities (SPE’s) and off-balance sheet partnerships carrying this debt were now either found to have been misclassified to begin with or were reconsolidated with the company as a result of their equity falling in value (Enron shares).Which leads us back to the beginning – Why did Enron’s share price tumble in 2001 ? Was it simply a natural result of a failing business , or had Enron’s reported and prospective earnings, in combination with its general financial health, not been honestly reported and evaluated?