RE: Credit Insurance Claim for PG&E

My vote would be to initiate a claim, as I want to see if it works and how much hassle is involved. We should have a meeting to get everyone's view. I will get Karen to set up. Tx Rick
(Karen- please set up a half hour mtg w/ Causey, Bill, Glisan and Jeff Hodge. Time sensitive so we need in next couple days. Tx Rick
-----Original Message-----
From: Bradford, William S.
Sent: Monday, April 30, 2001 8:27 PM
To: Buy, Rick; Glisan, Ben; Causey, Richard
Cc: Despain, Tim; Hodge, Jeffrey; Bouillion, James L.; Tribolet, Michael
Subject: Credit Insurance Claim for PG&E

Rick/Ben/Rick,

We need to decide whether we want to make a claim under our Portfolio Credit Insurance policy for the Pacific Gas & Electric Company financial swaps claim (approximately $74mm). The policy gives us 30 days from the date of the bankruptcy to give notice of the claim. The deadline is May 6, 2001.

It is not anticipated that any claim will mitigate any income loss as the portfolio credit reserve will increase by a similar amount to our claim. All benefits from the insurance have already been recognized from previous releases from the portfolio credit reserve. All recoveries in bankruptcy will passed to the insurance underwriters if we decide to make the claim.

Please advise of your thoughts or if it would be helpful to set up a meeting to discuss in more detail.

Regards,
Bill