Subject: Delta status
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Fri, 20 Apr 2001 10:56:00 -0700 (PDT)

I wanted to review where I think we are in this transaction.

1. Escrow account. We are still awaiting  closure on the issue of the 
lender's security interest in the escrow account.  A proposal was discussed 
with them to ensure that we could still close the transaction even if Delta 
had defaulted under their loan arrangement.  Indications were that this 
approach was generally acceptable, and Delta/Hancock are to send a letter 
agreement concerning this approach.  This has not yet been received.  This 
prevents the establishment of the escrow account.  We have sent the escrow 
agreement to the bank, but Delta has not completely signed off on the 
agreement.  

2. GE turbine contract.  Delta sent requested changes yesterday, and these 
were forwarded to GE.  I have not received a response from GE.

3.  Miscellaneous docs.  Enron has responded to all the documents requested 
by Hancock.  We are awaiting responses to our drafts. 

4.  GE consent.  Hancock requested some changes to the current draft, and a 
new letter agreement.  GE hasn't responded to the requests yet.  GE has dealt 
directly with Freshfields, so it is possible that there are discussions we 
aren't involved in.

I've left Lee a message concernig the GE items and the timing of signing.

Carolyn, please correct/add anything you think is important.

Kay