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Enron Mail |
Gentlemen -
I remembered that I'm in deposition on Tuesday and will have difficulty presenting Yao to the Legal VP PRC. Can I ask for help from one of you? On Monday, I'll send over a print-out of Yao's reviews and accomplishments for the first 6 months. Yao has been a big help to me. He effectively took over Frank Sayre's old job and has acted like my second-in-command in EGA Legal. That has meant more as I've been pretty tied up with Dabhol. Yao also took on SECLP, the Dabhol of the Carribean. Candidly speaking, SECLP is not like the typical Enron project that has failed. In most cases, we have professional lawyering which wrapped a bad business deal (e.g., Dabhol or Hainan). SECLP has very poor documentation and poor execution -- it is a mess in almost every way (e.g., partner, equipment, documentation, business decisions). Yao has really stepped in and taken as much control as possible in this mess. I believe that we have over $100 million at risk on SECLP. Finally, the Nigeria team has imploded. The team felt that they were cheated on their NPV bonus pool on the first $30 million that we made on the project. I'm sad to say that it has affected their behavior in going after the up to $40 million of Enron profit that remains on the project. Yao has continued working the deal as best as possible in their absence. I think that there is a 50% chance that we can get all or most of the remaining $40 million in this deal and Yao will be largely responsible for helping to hold it together. I'm a Yao fan. I respect his judgment and perserverance. I write this at 1:30 p.m. on a Saturday and he is down the hall on the phone about the Nigeria project. Bruce
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