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Enron Mail |
Gentlemen,
Following are my comments to the above guaranty: 1. Enron does not, as a matter of practice, issue performance guarantees. Is there some compelling reason why performance is necessary? 2. In section 2, there has been added an interest penalty component if Guarantor fails to pay upon Payment Demand. Under the Agreement, will Athens be required to pay an interest penalty if it fails to pay? If so, Enron could potentially be exposed to a double interest penalty, one for Enron and one for Athens. Is this the intended effect? 3. In section 6, paragrpah 4(b), what is the Counterparty's creditworthiness requirements? That's it. Please give me a call to discuss. Clement
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