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Enron Mail |
Interesting idea. Here are some of the issues we would need to think about.
California - since Direct Access is suspended, we would need to evaluate that the assignment would void our contract ( at least one commissioner at the PUC is still trying to further limit DA ). would need to check with our DASR team to see what restrictions exist on DASRing Assignment - the contracts generally would require consent to assignment by the customer confidentiality - may need consent of the customer to show the contract to the seller DYNEGY - would need Dynegy consent to the sale Other - issues may exist after we read the contracts. At least one of the customers on this list is bankrupt (Paradise Textille). I'll wait for some business direction before we start anything. Thanks. Vicki From: David W Delainey/ENRON@enronxgate on 11/27/2001 03:45 PM To: Mark S Muller/ENRON@enronXgate, Jeremy Blachman/ENRON@enronxgate cc: Don Black/ENRON@enronXgate, John J Lavorato/ENRON@enronXgate, Janet Dietrich/ENRON@enronxgate, Lamar Frazier/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, Dan Leff/ENRON@enronxgate Subject: FW: Contract sale idea Guys, I think Don has a good idea here - but it needs to be managed prudently. a) Mark who do we talk with in Dynegy to inform them that we are selling or otherwise disposing of material contracts or assets of EES? b) Jeremy, it is important to have a view on the viability of getting these customers to agree to an assignment and releasing us on confidentiality issues so that we can approach dealers/producers/utilities with a tight book? c) Vicki, clearly legal issues on the contract (ie) confidentiality, assignability, DASRing or assignment in a post non-deregulated California, etc. These issues need to be vetted before we approach any producers. The idea is to raise significant cash quickly Please respond ASAP. Regards Delainey -----Original Message----- From: Black, Don Sent: Tuesday, November 27, 2001 3:19 PM To: Delainey, David W. Cc: Lavorato, John Subject: Contract sale idea Sensitivity: Confidential Over $50mm listed below. I think Sempra or one of the producers would have interest in buying these contracts (obviously with a haircut) I will wait to hear from you how to move forward. Thanks CntrParty_NM CG_NM MTM Newark Group Inc., The CA-PG&E 10,229,801 Sutter Health System Procurement CA-PG&E 8,626,295 Tissurama Industries, Inc. CA-SOCAL Gas 4,600,862 Lockheed Martin Corporation CA-PG&E 4,451,494 Nissin Foods (USA) Co., Inc. CA-SOCAL Gas 4,204,934 Castaic Clay Manufacturing Co. CA-SOCAL Gas 4,049,547 Chroma Systems Partners CA-SOCAL Gas 3,926,683 Bay City Flower Co, Inc. CA-PG&E 3,361,741 Paradise Textile Corp. CA-SOCAL Gas 3,235,771 U.S. Dyeing & Finishing, Inc. CA-SOCAL Gas 3,076,664 Huntington Memorial Hospital CA-SOCAL Gas 2,957,537
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