Message-ID: <19314655.1075840904654.JavaMail.evans@thyme> Date: Fri, 22 Jun 2001 10:43:00 -0700 (PDT) From: john.lavorato@enron.com To: louise.kitchen@enron.com Subject: RE: Investments Meeting Agenda Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: John J Lavorato X-To: Louise Kitchen X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Restructuring X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst Does ECR realize the negatives coming in MEGS. -----Original Message----- From: Kitchen, Louise Sent: Thursday, June 21, 2001 4:55 PM To: Garland, Kevin Cc: Lavorato, John; Colwell, Wes; Miller, Michael L. Subject: Re: Investments Meeting Agenda I had a meeting this morning with Dick to go through the assets following a discussions with the Enron Americas team. Enron Americas will be keeping the following assets: Bridgeline - Mrha LRC (Enron I Cavern - to Bridgeline) - Mrha MEGS - this asset has been transferred to ECR within Enron Americas Onondaga - to be retained by Ben Jacoby This solves one of the issues below. Louise From: Kevin Garland/ENRON@enronXgate on 06/21/2001 03:54 PM To: John J Lavorato/ENRON@enronXgate, Wes Colwell/ENRON@enronXgate, Michael L Miller/ENRON@enronXgate cc: Louise Kitchen/HOU/ECT@ECT Subject: Investments Meeting Agenda John, Wes and Michael, The purpose of tomorrow's meeting is to discuss a few of the investments that we are planning on transferring to the new investment group. The specific issues are as follows: ? Encorp - the value of this investment was written up from $3 million to $9.85 million in Q4 2000 without justification. It should be written back down at the end of this quarter. Otherwise, we are going to have a bigger problem later. ? Dais Analytic - same issue as above. Investment was written up from $8 million to $20 million. It should be written back down this quarter. ? AMPS - This is a problem. This company is going to continue to need capital (an additional $7 million immediately) well beyond what Enron should be funding. I am not willing to provide this company with ongoing funding without significant further evaluation. If it is that important to the strategic effort of ENA, then I recommend that ENA continue to manage the company and provide financing. ? Bridgeline - After further evaluation, it is clear that this is not a merchant investment and should not be moved to my group. I spoke with Jeff Donahue, and we both agree that if you want it sold, then his team should be the right one to do it. ? Copel - This one is fuzzy, but Jeff Donahue and I have agreed that one of us should take responsibility for exiting this investment. We still need to figure this one out. KG