Message-ID: <30774771.1075855289157.JavaMail.evans@thyme> Date: Tue, 27 Nov 2001 05:52:58 -0800 (PST) From: louise.kitchen@enron.com To: s..bradford@enron.com Subject: FW: Liquidity Proposal Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Kitchen, Louise X-To: Bradford, William S. X-cc: X-bcc: X-Folder: \Louise_Kitchen_Jan2002_1\Kitchen, Louise\Sent Items X-Origin: Kitchen-L X-FileName: lkitchen (Non-Privileged).pst These guys tried the Ken Lay route. Now they are part of your working group. -----Original Message----- From: Lavorato, John Sent: Monday, November 26, 2001 11:31 AM To: Kitchen, Louise Subject: FW: Liquidity Proposal Importance: High -----Original Message----- From: "Ackermann, Hilary" @ENRON Sent: Wednesday, November 21, 2001 10:46 AM To: 'Lavorato@enron.com' Subject: Liquidity Proposal Importance: High Hilary E. Ackermann Goldman Sachs Credit Risk Management & Advisory Phone: 212-902-3724 Fax: 212-428-1181 E-Mail: hilary.ackermann@gs.com Dear Mr. Lavorato: Following up on your and Ken Lay's conversation with Gary Cohn, I would like to forward the following proposal, acting for each of Goldman Sachs Capital Markets and J.Aron. > In order to provide Enron North America with additional liquidity, J. Aron > and GSCM have discussed entering into the following series of transactions > on terms to be agreed between each of the relevant parties: > > 1. Enron Corp./J. Aron - FX Option sold by Enron Corp. to J. Aron with a > settlement date of Dec 11, 01 would be settled on Nov 21, 01. > > 2. Enron NA/GSCM - Interest Rate Swap Portfolio - At Enron NA's option, > we would either (a) close out and portfolio on Nov 21, 01, resulting in a > payment from GSCM to Enron NA or (b) bilaterally reduce applicable margin > trigger from $10mm to zero, which based on current MTM would result in > $10mm of additional margin being paid by GSCM to Enron NA. > > Weather Derivative Transaction - Applicable margin trigger would be > reduced from $50mm to $5mm, which based on current MTM would result in > ~$18mm of margin being paid by GSCM to Enron NA. > > 3. Enron NA/J. Aron - Financial Derivative Portfolio - At Enron NA's > option, we would either (a) close out and portfolio on Nov 21, 01, > resulting in a payment from J. Aron to Enron NA or (b) bilaterally reduce > applicable margin trigger from $10mm to zero, which based on current MTM > would result in $10mm of additional margin being paid by J. Aron to Enron > NA. > > Physical Natural Gas Receivable - In consideration of the foregoing, Enron > NA would settle $10.5mm physical natural gas receivable for value Nov 21, > 01. > Please call me at the number below at your soonest convenience to discuss further. Thank you. Hilary E. Ackermann Goldman Sachs Credit Risk Management & Advisory Phone: 212-902-3724 Fax: 212-428-1181 E-Mail: hilary.ackermann@gs.com