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Enron Mail |
Clement,
Russell Diamond of the Enron Credit group would like Enron to issue to Engage (now known as Coastal Merchant Energy, L.P.) a blanket guarantee covering obligations of ENA, EPMI, ECC and Clinton Energy Management Services, Inc. without necessarily tying those obligations to specific contracts. Do you have a form of guaranty that could be used for this. I think that the guaranty would still have a limit ($25MM)?. Please advise. ----- Forwarded by Dan J Hyvl/HOU/ECT on 10/13/2000 11:41 AM ----- Dan J Hyvl 10/13/2000 11:35 AM To: Russell Diamond/HOU/ECT@ECT cc: Debra Perlingiere/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT Subject: Re: Engage Russell, The below two documents are the credit worksheet and the contract relationship documents which you provided. The credit worksheet states that the guaranty should cover ENA, EPMI, ECC and Clinton Energy Management Services, Inc. and additionally should cover the master energy agreement with EPMI. Do we have a date of execution or effective date for such master energy agreement. The contract relationship document merely states that the guaranty should cover the new master firm purchase sale agreement that ENA is negotiating with Engage and an master energy agreement between EPMI and ____. No agreements of any type are specified for ECC or Clinton Energy Management Services, Inc. Also, are any of the Master Swap agreements that ENA has with Engage to be covered by the requested guaranty? I believe that we need to get together at your convenience and determine exactly which contracts Enron Corp. is to cover with the guaranty agreement being offered as a part of the security for the Master Firm Purchase Sale Agreement. Please let me know when you will be available to discuss. Russell Diamond 10/13/2000 10:57 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Debra Perlingiere/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT Subject: Re: Engage Dan, I provided all the information that you are asking for on the original credit worksheet I e-mailed to ENA legal on August 29. You will notice in the comments section the Enron entities I wanted covered in the guaranty along with the Contracts that needed to be reference. If you need a copy the specific contracts that need to be covered they can be obtained through the documentation group, or through 'Live Link' on our computers. Please make note of the name change that has now occurred with respect to Engage. Russell Dan J Hyvl 10/13/2000 10:24 AM To: Russell Diamond/HOU/ECT@ECT cc: Debra Perlingiere/HOU/ECT@ECT, Jeffrey T Hodge/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT Subject: Re: Engage Russell, We need closure on the guaranty issue. All of the guaranty formats you provided to me covered specific enron entities under specific contracts that were identified in the guaranty. If you can give me the specific contracts for each of the other enron entities you want covered by the Gas physical master contract of ENA whose payment obligations to Engage Energy Marketing, L.P.you want guarantied by Enron, I will take the lead to draft the guaranty and have it forward to Enron Corp for approval prior to sending it out as a draft to Engage Energy Marketing, L.P. Russell Diamond 10/13/2000 10:11 AM To: Dan J Hyvl/HOU/ECT@ECT, Debra Perlingiere/HOU/ECT@ECT cc: Jeffrey T Hodge/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT Subject: Re: Engage Dan, This is in response to my continued efforts with legal to make note of my intended priority of executing a Master Firm with Coastal Energy (formerly Engage US). As previous e-mails below indicate and phone calls with the ENA legal group and Coastal, the draft has yet to be sent out. I have confirmed with Coastal today, they have STILL not received the draft although are expecting this from ENA. We have outstanding exposure with this entity and is important from a credit, legal, and contractual standpoint that an agreement is executed. I understand that in the past they have been unwilling to negotiate a Master although I want one put in place. Please do what you need to, to get this draft sent to the counterparty. Regards, Russell ---------------------- Forwarded by Russell Diamond/HOU/ECT on 10/13/2000 10:00 AM --------------------------- From: Russell Diamond 09/28/2000 10:07 AM To: Dan J Hyvl/HOU/ECT@ECT cc: Debra Perlingiere/HOU/ECT@ECT, William S Bradford/HOU/ECT@ECT Subject: Re: Engage Dan, Per Debra's e-mail to me, why can we not include other entities on this guaranty, it seems we have got guaranty's in place with other counterparty's in which they reference specific contracts as well as entities not related to the contract, i.e. Sempra, Duke, Aquila, Dynegy,...... Dan, I see the execution of this contract as a priority considering the trading volumes on Enron Online and current market conditions. I know in the past, we have been unable to negotiate a Master Firm with Engage US, although their legal group is fully aware of our request to negotiate a contract. Please send the draft out to the contact listed on the credit worksheet and priortize the negotiation of this contract. Regards, Russell DEBRA PERLINGIERE 09/27/2000 12:05 PM To: Russell Diamond/HOU/ECT@ECT cc: Dan J Hyvl/HOU/ECT@ECT Subject: Engage This draft has not been sent due to pending guaranty issues. The attached has guaranties for The Coastal Corporation and Enron Corp. for 20mm / 30 mm ( per your change) and are specific to this agreement. Dan has advised the guaranties are written for the agreement and we cannot change to include other Enron Companies. You will need to contact Enron Corp. for a guaranty to included other companies. Please let me know how you wish to proceed. Finally, the contact on your worksheet is Faye Carlin (713) 877-7133 Debra Perlingiere Enron North America Corp. Legal Department 1400 Smith Street, EB 3885 Houston, Texas 77002 dperlin@enron.com Phone 713-853-7658 Fax 713-646-3490
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