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Enron Mail |
The insurance has been purchased by Enron exclusively to cover our equity and
our subd debt through our commercial program (not OPIC). We have covered the following investments to date on Cuiaba. EPE $235MM GASMAT $ 60MM GASBOL $132MM Up to US$200MM could be reimbursed for an insuarble event. However, that $200 may be limited by draws associated with insurable events at other projects. This $200MM could be further limited by draws from other projects because the program has a cap of $250MM total, but the cap can be reinstated following a draw with an exclusion for the country where the previous hit occurred. Mariella Mahan@ENRON_DEVELOPMENT 02/02/2001 11:27 AM To: Rob G Gay/NA/Enron@ENRON cc: Tracee Bersani/HOU/ECT@ECT@ENRON, 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 Subject: Re: Insurance Rob, Isn't the $200 million the cap of OPIC and doesn't that apply to 100% of the equity covered by OPIC, which means that, I guess (and I don't know if Shelll qualifies or if we structured around this) we share with Shell the $200 million on the basis of equity percentages held by each? Thanks Rob G Gay@ENRON 02/02/2001 09:27 AM To: Tracee Bersani/HOU/ECT@ECT cc: 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 Subject: Re: Insurance 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.
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