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Enron Mail |
FYR -----Original Message----- From: =09Bouillion, James L. =20 Sent:=09Friday, November 09, 2001 3:25 PM To:=09McMahon, Jeffrey; Derrick Jr., James Cc:=09Sekse, Per; Deffner, Joseph; Armogida, Jim Subject:=09FW: Mahonia X Advance Payment Guarantee Bond/Hartford Bond=09#61= BSAP3909 I will send a copy of the letter when it arrives. -----Original Message----- From: =09"Phil Bair" <pbair@jwortham.com <mailto:pbair@jwortham.com<<@ENRON= =20 Sent:=09Friday, November 09, 2001 2:56 PM To:=09Bouillion, James L. Subject:=09Mahonia X Advance Payment Guarantee Bond/Hartford Bond=09#61BSAP= 3909 Jim-On the last advance payment bond we executed in December 2000, Hartford= participated at a limit of $52.8 million. A separate and specific indemni= ty agreement was executed by Enron in favor of Hartford which contains a tr= igger collateral call event for 100% security in the form of a letter of cr= edit if the credit rating of Enron falls below BBB or Baa2. (There is an o= ption to have the bond terminated in lieu of posting a LOC, but I doubt if = that is a viable alternative). Hartford called today and indicated with th= e downgrade this morning by Moody's, we are now at the edge of the trigger = event. They are sending a letter to the attention of your general counsel = confirming this condition in the indemnity agreement. I've asked them to = send me a telefax of the letter, which I will forward to you. This is not = a call for collateral at this point; Hartford simply wants to reinforce the= potential requirement. I'm sending a copy of this to Joe Deffner so he wi= ll know what is transpiring if he gets a call. Call if you have any questions. Thanks. Philip N. Bair 713-346-1378 (Telephone) 713-520-1260 (Telefax) pbair@jwortham.com <mailto:pbair@jwortham.com<
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