Subject: FW: Balli Group/Alaghband Update Report
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked]
Date: Wed, 17 Oct 2001 08:48:05 -0700 (PDT)

I do not believe the Alaghband issue was researched for the first deal; however, the two deals are vastly different from each other.  The first deal (with Webco JV) was a 1 year inventory management deal in which we had title to the product the entire time.  That risk profile contrasts sharply with a 15 year option with a $40MM unsecured loan. Per our London team, the deal does not break even until year 7, and much of the value is in the tail. Clearly, a higher level of due diligence should be required.

Additionally, Paul Maley does not have pro-forma data on the merged Balli-Klockner entity - just a company prepared presentation. Balli is purely a trading company, and it is our understanding that Klockner is largely the same; the new entity is projected to be extremely leveraged. 

Please let me know if you have additional questions.

Thanks,
Tanya

 -----Original Message-----
From: 	Buy, Rick  
Sent:	Wednesday, October 17, 2001 8:33 AM
To:	Rohauer, Tanya
Subject:	FW:  Balli Group/Alaghband Update Report
Importance:	High
Sensitivity:	Confidential

fyi, any thoughts? rick
 -----Original Message-----
From: 	Herbelot, Olivier  
Sent:	Wednesday, October 17, 2001 5:57 AM
To:	Buy, Rick
Cc:	Gorte, David; Murphy, Ted
Subject:	FW:  Balli Group/Alaghband Update Report
Importance:	High
Sensitivity:	Confidential

Rick:

Please find attached an EIM report on our prospective counterparty(ies) on the Balli-Klockner $40m steel prepay.  We received this report from EIM after informing them that we would require a background check by Lynn's team before proceeding.  

Apparently, Enron closed a deal in the US earlier this year with WeBco which is a joint venture between Balli Group and Wierton Steel.  The commercial team is arguing that RAC and others must have investigated the allegations below at the time, but obviously felt comfortable enough to let the deal proceed.  

I believe that Ted is planning to give you a call on this to discuss.  

Regards.

Olivier

PS:  I am forwarding you another email we received from EIM on the same subject. 
 -----Original Message-----
From: 	Pudenz, Scott  
Sent:	17 October 2001 09:49
To:	Maley, Paul; Herbelot, Olivier
Subject:	FW:  Balli Group/Alaghband Update Report

FYI........
 -----Original Message-----
From: 	De Klerk, Nadja  
Sent:	Monday 15 October 2001 15:05
To:	Bokeloh, Frank; Pudenz, Scott
Subject:	 Balli Group/Alaghband Update Report

	Kimberly Landry/ENRON@enronXgate 02/04/2001 21:22 	   To: Greg Hermans/ENRON@enronXgate, Bruce Garner/LON/ECT@ECT, Kevin ODonnell/ENRON@enronXgate, Andrea V Reed/ENRON@enronXgate  cc: Robert Johnston/HOU/ECT@ECT, Scott Tholan/ENRON@enronXgate, Peggy Determeyer/ENRON@enronXgate  Subject: Balli Group/Alaghband Update Report	

	  	

Dear Greg,

Attached is an update to my initial report on Balli Group and the Alaghband family.  

I have obtained a copy of the 1994 House of Representatives report referenced in the March 1999 Der Spiegel article I noted in my initial report.  This House report contains derogatory allegations about the Alaghband family and their business practices -- the relevant section is included in the attached update.  Sources note that the author of the report was known for "sensational" writing on topics difficult to verify.

I have also included excerpts of an interview with another source -- an Iranian businessman based in London who is a close personal and professional contact of the Alaghband family.  His comments are positive, barring Vahid Alaghband's alleged tendency to hold bills, and provide some additional information on the family and their  associations.  

I believe this wraps up all outstanding inquiries on this matter.  Please let me know if you have questions or areas for additional inquiry.

Best regards,

Kimberly
x. 53587

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