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Enron Mail |
Attorney-Client Privileged Communication
Not Discoverable Hi Tim Leslie Reeves recently spoke to me about an outstanding receivable we still have relating to PCA. PCA went into bankruptcy in 1998. At the time of PCA's bankruptcy, PCA owed a $5.3 million receivable to EPMI. On EPMI's books, this uncollected receivable amount was offset by an out-of-the money forward position EPMI had with PCA which we were able to take to zero when PCA defaulted (contract provided for one way payments upon the occurrence of an event of default) and some funds from credit. After netting all these amounts, there is still a $600,000 receivable showing up as owed from PCA to EPMI. Based on the current bankruptcy proceedings, it is not likely that EPMI will receive any additional funds from PCA (we have taken a very low key approach in the bankruptcy due to the lack of PCA funds, the extensive amounts owed by PCA to other creditors, the assertions being made by PCA against some of the other creditors, and the legal effect of the one-way payment termination payment that provided us a significant offset to the receivable). Accordingly, unless I hear otherwise from you, I will talk to Leslie and tell her to go ahead and clean up the $600,000 PCA receivable now, and in the unlikely event PCA makes payments to any creditors, we would then give such amounts received from PCA back to you. Call me if you have any questions. Thanks Elizabeth 713 853 6349
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