Subject: FW: Dabhol -- A Brief Legal Update
From: [email-masked]
To: [email-masked]
Date: Mon, 4 Jun 2001 06:09:07 -0700 (PDT)

-----Original Message-----
From: 	[email-masked]@ENRON <mailto:[email-masked]@ENRON> [mailto:[email-masked]] <mailto:[mailto:[email-masked]]> 
Sent:	Saturday, June 02, 2001 1:20 PM
To:	Harris, Stephanie J; [email-masked] <mailto:[email-masked]>; Haedicke, Mark
Cc:	[email-masked] <mailto:[email-masked]>
Subject:	Dabhol -- A Brief Legal Update

Gentlemen -

A few updates:

   We hope to file the petition on Monday in the Bombay High Court seeking
   a ruling that the MERC does not have jurisdiction over the PPA and the
   current disputes between MSEB and Dabhol Power Company.

   The Dabhol lenders have planned 3 days of meetings in Singapore this
   coming week and we will attend these meetings.  Our lenders seem to be
   increasingly nervous.  They may try to cure the construction contract
   defaults (over $30 million would be required in mid-June).  While we do
   not relish having the construction contracts fall away, we do not
   believe that funding is prudent at this point.  MSEB has torn up the PPA
   and stated that it will not cooperate with Phase II power station
   testing, the only real remaining function under the power plant
   construction contract.

   A few insolvency/creditors' rights lawyers from Skadden will be here on
   Wednesday to discuss Dabhol creditor remedies and possible DPC defenses
   (both in India and the U.S.).  A lawyer from Susman Godfrey is scheduled
   to join us at that meeting.

Bruce