Message-ID: <30415888.1075862331156.JavaMail.evans@thyme> Date: Mon, 19 Nov 2001 11:27:40 -0800 (PST) From: stanley.horton@enron.com To: adam.umanoff@enron.com Subject: RE: Wind Company Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Horton, Stanley X-To: Umanoff, Adam X-cc: X-bcc: X-Folder: \SHORTON (Non-Privileged)\Horton, Stanley\Sent Items X-Origin: Horton-S X-FileName: SHORTON (Non-Privileged).pst We need to get this done. What other resources do you need to get this dea= l done. -----Original Message----- From: =09Umanoff, Adam =20 Sent:=09Monday, November 19, 2001 10:53 AM To:=09Horton, Stanley Subject:=09RE: Wind Company My apologies - I obviously misunderstood the message from last week. I sho= uld have called you to discuss before firing off my memo. We are doing eve= rything possible to accelerate cash and reduce expenses in the short-term, = including financing our Dutch blade facility. We are working to put in pla= ce a bank line for working capital, although that will take a bit of time t= o arrange. We are also working to defer vendor payments over the next seve= ral weeks. Our key focus remains getting IMI/Clear Sky closed. Our deal t= eam is in Columbus, Ohio meeting with AEP this week and our goal is to get = a PSA signed with AEP by month end, then complete the project and close the= sale and term financing in December! I met with one of AEP's senior guys = in Abilene last week - but for credit concerns over Enron Wind and Enron, h= e continues to say all the right things about the project purchase. Next st= ep is to sign the PSA. Adam From:=09Stanley Horton/ENRON@enronXgate on 11/19/2001 07:45 AM CST To:=09Adam Umanoff/EWC/Enron@ENRON cc:=09Tod A Lindholm/ENRON@enronXgate=20 Subject:=09RE: Wind Company Quite frankly I am getting tired of memos like this! There has not been a = decision not to provide short-term liquidity for Enron Wind. If there was = I would have called. Enron is in the midst of a liquidity crisis. I need = the support of the entire team as does Enron to help us get through this. = I need you to see the bigger picture and to think of ways that Wind can hel= p. I need cost reductions, improved cash flow and SUPPORT. Thank you! -----Original Message----- From: =09Umanoff, Adam =20 Sent:=09Friday, November 16, 2001 8:30 PM To:=09Horton, Stanley Subject:=09Wind Company While I understand that the Wind Co is clearly a "non-core" asset for Enron= , I am very concerned about the apparent decision in Houston not to provid= e short-term liquidity for our operations (I have heard that the wind co is= on its own for cash going forward). While I am probably more eager than a= nyone to have the Wind Co regain its financial independence, I can not do i= t overnight and am worried about the potentially devasting impact which a l= ack of short-term capital will have on our business and, quite directly, th= e value of this asset to Enron. As you know, our lenders on IMI/Clear Sky have refused to fund a construct= ion loan (they will not take Enron equity bridge risk) - this construction = loan was the most important piece of our working capital/cash funding for Q= 4. AEP and its lenders on IMI/Clear Sky are also expressing serious concer= n about the Enron warranty guaranty (we will likely have to reserve cash to= secure our warranty obligations, further exacerbating our cash position). = FPL and AEP have in essence put on hold their deals with Enron Wind pendin= g some clarity on how Enron's liquidity difficulties may affect Enron Wind.= AEP has gone as far as saying the Enron Wind is probably BK without worki= ng capital support from Enron, and are understandably asking why should the= y be comfortable with our performance risk? Our European vendors, still mi= ndful of Tacke's bankruptcy in 1997, are extremely concerned about our fina= ncial condition. And a number of our counterparties who owe us money but a= re also owed money by Enron affiliates are seeking to set-off those obligat= ions. While I will have better numbers over this weekend, without the IMI/= Clear Sky construction loan, I will need between $30-35mm through the end o= f the year (until the AEP sale closes) in order to meet our working capital= needs. Without that support, I can almost guaranty you I will not be able= to sell IMI/Clear Sky to AEP and am worried about our short-term financial= survival. =20 Stan - this clearly has serious implications for the value of Enron Wind an= d our sales effort. I am meeting again with my finance team (such as it is= ) over the weekend and on Monday morning. I will set up some time with you= on Monday or Tuesday to discuss. I know there is no desire to support the= Wind Co medium to long-term, but a decision to cut us off now could be fat= al. =20 Adam=20