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Enron Mail |
Gentlemen,
Last Feb 22, I sent you an e-mail on an insurance concept to mitigate some of the risks of the Delmarva peaking deal. In essence, the insurance policy would trigger off the sale of the asset to a third party, or other restructuring designed to recapture and repay moneys owed creditors such as Enron. The basic formula would be (Asset Sale Proceeds - Debt - Moneys Owed Enron under both the Financial Buy or Financial Sell contracts = Loss). I propose that Enron take the first $50/kw of loss and 10% of the balance. Initial results from numerical analysis suggests I could pay $5 million for the policy. I have attached a simple spreadsheet showing max. possible loss in any year, and equity write down each year under the maximum loss scenario. The equity write down is designed to model the likelihood that equity will allow the project to go into bankruptcy. regards, Don
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