Subject: Re: Insurance
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 2 Feb 2001 01:27:00 -0800 (PST)

I believe that is correct.

Tracee Bersani@ECT
02/01/2001 05:02 PM
To: Rob G Gay/NA/Enron@ENRON
cc:  

Subject: Re: Insurance  

Rob,

Didn't he say we were only covered up to $200 MM (e.g. the limit of our 
contract frustration cover?) With the current Shell/enron sharing 
percentages, it would seem that we are entitled to 72% of the $360 MM payment 
or $259 MM, thus we would only be out by $59 MM.

Tracee

Rob G Gay@ENRON
02/01/2001 04:57 PM
To: Peter E Weidler/NA/Enron@Enron, Richard A Lammers/SA/Enron@Enron, Laine A 
Powell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jose 
Bestard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Novak/SA/Enron@Enron, Eddy 
Daniels/NA/Enron@Enron, Mariella Mahan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Tracee Bersani/HOU/ECT@ECT
cc: Cliff Shedd/NA/Enron@Enron 
Subject: Insurance

According to Cliff Shedd, we would be covered by insurance if we terminated 
the contract with Furnas and Furnas failed to pay the termination payment.  
However the insurers will only pay after we receive an arbitration judgement 
against them and the refuse to honor the judgement.  I assume we would also 
have to exhaust our remedies against trhe guarantor (Eletrobras).

Also, we are required to notify the underwriters immediately of a material 
default.