Subject: FW: fyi - Elektro
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Mon, 12 Nov 2001 07:48:43 -0800 (PST)

We are working with the guys at Elektro on this.   Elektro had a preliminary discussion with AA Brazil about this and they don't understand CVM's position on this.   Elektro is meeting with AA again today and we will know more this afternoon.  Elektro is meeting with CVM and Elektro lawyers are working on this.   The CVM must approve the Elektro debenture sale so this will delay the process.  Elektro has 15 days to respond to CVM decision.  We are working on the issues with the guys at Elektro.

Sommers 

 -----Original Message-----
From: 	Weidler, Peter E  
Sent:	Monday, November 12, 2001 8:11 AM
To:	Sommers, Jeffrey E.
Subject:	fyi - Elektro

Brazil: Elektro must revise balance sheets
Valor Economico, 12 Nov 2001, p. b-7:-
 The Brazilian electricity supply company Elektro must change and publish again its balance sheets of 2000 and of the first two quarters of 2001 according to a decision from the Brazilian Securities Commission (CVM) and with the changes the losses registered by the company in those periods will increase.
CVM is against two procedures used by Elektro which were based on future profit expectations in a term between 10 and 20 years since it is too risky to make estimations for such a long term. The procedures are related to the accounting of social contributions and income tax credits.
Elektro is controlled by the US company Enron.