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Enron Mail |
---------------------- Forwarded by Kay Mann/Corp/Enron on 06/20/2000 01:17
PM --------------------------- Kay Mann 09/02/1999 08:34 AM To: Robert E MacMillan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: David Barru/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, John Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eddie Clay/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jerry D Martin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bill Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Erik Kingshill/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Keith Marlow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ed Giblin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert E MacMillan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dick Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jamie Dunlap/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EPC 43/50 (Demar) Bob (and others), The line of credit on EPC 4 is expired, and I believe tapped out, if you add in the fee to Enron ($5mm?) which remains unpaid. Another option would be to try to get a security interest in the revenues on 4 for the new project. I have been looking in to this option since you, Erik and I discussed this possibility. Input from Mexican counsel will be required and has been sought. Dick has scheduled a meeting for later today when we can brainstorm on these options. I'm confident that there will be a way to skin this cat, it just may take a few days to sort through. Kay Robert E MacMillan 09/02/99 07:44 AM Sent by: Robert E MacMillan To: David Barru/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: John Schwartzenburg/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Kay Mann/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Eddie Clay/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jerry D Martin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bill Harris/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Erik Kingshill/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Keith Marlow/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Ed Giblin/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Robert E MacMillan/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Dick Westfahl/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jamie Dunlap/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Larry L Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Mary E Garza/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Re: EPC 43/50 (Demar) David, To mitigate the risk of funding Demar before an assignment of contract revenue for the EPC-43/50 offshore work is in place we could seek written confirmation from Demar that the present assignment of contract revenues can be utilized to cover early advances for this new work. It is my understanding that there is in excess of $60MM to collect and the present $20MM line of credit is funded to $16MM+. The collateral in place is a barge worth approximately $12MM, property in Cd. del Carmen worth approximately $3.2MM and a house in Mexico City worth approximately $500,000. Obviously the source of repayment is the revenue from the Pemex contract EPC-4 which we receive in a bank account controlled by Enron. Practically, the Pemex contract will likely take 30 days to execute and an assignment of contract revenues which can only be requested after the contract execution, will take approximately 1 week to have in hand. Due to urgent nature of the work, that is, it will start immediately upon advice of award from Pemex, Demar can not wait some 40 days for funding. Our experience with Demar has been good, so good as a matter of fact that we have decided not to provide the administrative support in Cd. del Carmen and Mexico City to which we are obligated in our agreement with Demar. I ask all members of the team to consider the possibility of funding initially under the EPC-4 agreements, which need to be extended in any event and to add language to cover this issue would be fairly straight forward. Bob MacMillan
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