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Enron Mail |
Dan,
I realize that the collateral language has been in the contract throughout our negotiations. However, our VP of credit only recently reviewed the contract. His concern is that, with a collateral limit of only $1.5 million, Ormet would be exposed to having to post a LOC every month with natural gas prices where they are currently. I suggested to Craig that we make it $10 million, consistent with Enron's collateral limit. I realize that Enron's credit group ultimately needs to decide on an amount. $10 million my be a bit too high, but $1.5 million is too low. Let me know if you have any further questions. Thanks, Mike <<< <Dan.J.Hyvl@enron.com< 12/08/00 04:08PM <<< Mike, I have reviewed the requested changes to Exhibit D, I am okay with the proposed changes so long as the same changes are made to Exhibit C. The change to Suspension of performance on Appendix 1 is okay. The collateral requirement language has been in the contract for some time so I am concerned with bringing up changes at this late date; however, please let me know your concern so that we can resolve the issue with the Enron Credit group. "Mike Cesario" To: <Craig.Breslau@enron.com<, <MCesario@orm <Dan.J.Hyvl@enron.com< et.com< cc: Subject: Firm Purchase/Sale Agreement 12/08/2000 10:16 AM Attached is a copy of Ormet's mark-up to the Firm Purchase/Sale Agreement post V.P. of Finance review. The changes are primarily to Exhibit D. Additionally, there is one chage under Suspension of Performance on Appendix 1 page "1"-3. Finally, we need to address the collateral requirment/termination payment threshhold in section 4.3. Thanks, Mike (See attached file: Enron_Agreement.doc)
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