Subject: FW: Dabhol -- A Brief Legal Update
From: [email-masked]
To: [email-masked], [email-masked]
Date: Mon, 21 May 2001 04:07:00 -0700 (PDT)

-----Original Message-----
From:  Lundstrom, Bruce  
Sent: Sunday, May 20, 2001 5:08 PM
To: Derrick Jr., James; Walls Jr., Rob; Mark E Haedicke@ECT
Cc: Rogers, Rex
Subject: Dabhol -- A Brief Legal Update

Gentlemen -

On Saturday, we received the consent required from the lenders to serve 
Preliminary Termination Notices (PTNs) on MSEB under the PPA.  The consent 
allows us to serve PTNs for basically every bad act committed by our Indian 
counterparts to date.  We will need further lender approval to serve PTNs for 
future bad acts.

On Saturday, we served PTNs on MSEB for (a) failure to pay certain amounts 
under the PPA and (b) repudiation by MSEB of the PPA.  There are a few more 
PTNs that will be served on MSEB in early June -- the underlying defaults for 
these PTNs required a 60 day notice period before service of a PTN and these 
notices were served in early April.

Paul Kraske, General Counsel of Dabhol Power Company, told me that he 
receives 4 Indian newspapers (including national newspapers) at his 
apartment.  On Sunday, our service of the PTNs was the lead story in all 4 
newspapers.

Bruce