Message-ID: <7566243.1075854444682.JavaMail.evans@thyme> Date: Wed, 17 May 2000 13:35:00 -0700 (PDT) From: david.delainey@enron.com To: william.bradford@enron.com Subject: Re: Excess Credit Exposure Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: David W Delainey X-To: William S Bradford X-cc: X-bcc: X-Folder: \David_Delainey_Dec2000\Notes Folders\All documents X-Origin: Delainey-D X-FileName: ddelain.nsf Bill, can you set up a meeting to discuss credit issues. just you and I is fine. Regards Delainey ---------------------- Forwarded by David W Delainey/HOU/ECT on 05/17/2000 08:35 PM --------------------------- From: William S Bradford on 05/02/2000 04:04 PM To: David W Delainey/HOU/ECT@ECT cc: Rick Buy/HOU/ECT@ECT Subject: Re: Excess Credit Exposure Dave, a) I do not believe Skilling is aware of the latest updates on our efforts to syndicate some of the Canadian exposures. To my knowledge, the last time it was brought to his attention was March 1999 (Blue Range default). We do report our top exposures to him and the Board which includes CNR, Petro-Canada, and Talisman on a quarterly basis. Rob and team are actively working with my team to mitigate exposures through other measures. b) I will be happy to provide insight as needed. The riskiest commercial objections are from Lagrasta's group. c) We have received margin from Sempra and Duke. We have a valuation dispute with Statoil and are actively working through the details. Let me know if you need further information. Bill David W Delainey 05/01/2000 07:04 PM To: Rick Buy/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT, Rob Milnthorp/CAL/ECT@ECT, Edward Ondarza/HOU/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, Raymond Bowen/HOU/ECT@ECT cc: John J Lavorato/Corp/Enron@Enron Subject: Excess Credit Exposure Guys, I went throught the Credit Margin Exception Report for 4/24/00. This shows our excess credit exposure at approximately $ 391M (after guarantees). I have a couple of questions: a) Canada (>$200M) - Rick/Bill/Rob - Is the board and Skilling aware of the credit positions and OK? I know Rob has been working on mitigation plans; b) Commercial Objections: (>$67M) - Paper - Edward ($27M) - The report shows a number of commerical objections to calling for collateral ie) Repap, Times Mirror and Waste Mgt. Can you give me a call to discuss - we may need documentation to support; - Gas/Mid-Mkt - Jeff ($29M)- Do you own Cross Timbers Oil Co, Torch Energy, Aurora Natural Gas, Seneca Resource Corp and Cody Energy? We have in these cases additional commercial objections to calling for collateral - lets discuss; - Mariner ($9M)- Ray we are showing a collateral need of approx. $9.0M - given our equity position this may be moot;however, lets discuss. c) Margin Call (>$51M) - Rick/Bill - have we been successful in getting the margin posted by Sempra, Statoil and Duke? Canada is a tricky issue; however, we should be able to work down the commercial objections and collect on the margin calls to get the number down. Regards Delainey