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----- Forwarded by Richard B Sanders/HOU/ECT on 04/19/2001 12:39 PM -----
"J. ROBERT NELSON" <JRNELSON@LLGM.COM< 04/12/2001 04:40 PM To: RICHARD.b.sanders@enron.com cc: "CARL A. EKLUND" <CEKLUND@LLGM.COM< Subject: California Power Exchange Joe Eisenberg just floated a trial balloon with me. Joe is at risk of losing the CFO and counsel, something I reported yesterday. On top of that, the creditors committee is balking at spending a part of the approximately $20 million of "unencumbered" cash to keep the doors open and generate numbers that only benefit participants. Joe is thinking about a liquidating plan. He didn't have all the details, but he did mention several points. Some amount would be set aside to pay the trade debt. He used a $5 million number. The total unsecured debt (not including participants' claims) could be as much as $20 million if rejection damages are included, so those creditors would stand to get around 25%. The balance of the cash, after paying administrative costs, would go, directly or indirectly, for the benefit of participants. The litigation and claims resolution would be under the control of the participants. Some of the cash would pay for accounting work. Other cash would pay for prosecution of litigation claims under the direction of a committee. In the end, whatever cash remains together with any recoveries from litigation, would presumably be distributed to participants. I assume the plan would designate some individual to supervise the wind up process. The participants committee could remain in existence to supervise the process. If we structured such a plan, we'd try to push it to confirmation quickly, assuming support from the creditors committee. The option may be appointment of a trustee. We should discuss our preference so that I can get back to Eisenberg promptly. "This e-mail, including attachments, contains information that is confidential and it may be protected by the attorney/client or other privileges. This e-mail, including attachments, constitutes non-public information intended to be conveyed only to the designated recipient(s). If you are not an intended recipient, please delete this e-mail, including attachments, and notify me by return mail, e-mail or at (insert your telephone number). The unauthorized use, dissemination, distribution or reproduction of this e-mail, including attachments, is prohibited and may be unlawful. J. Robert Nelson 725 Soth Figueroa St, Los Angeles, Ca. 90017-5436 ============================================================================== This e-mail, including attachments, contains information that is confidential and may be protected by the attorney/client or other privileges. This e-mail, including attachments, constitutes non-public information intended to be conveyed only to the designated recipient(s). If you are not an intended recipient, please delete this e-mail, including attachments, and notify me. The unauthorized use, dissemination, distribution or reproduction of this e-mail, including attachments, is prohibited and may be unlawful. ==============================================================================
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