Enron Mail

From:rtellis@milbank.com
To:richard.b.sanders@enron.com
Subject:Nolan Deposition: Day 3
Cc:showard@milbank.com
Bcc:showard@milbank.com
Date:Wed, 19 Jul 2000 16:27:00 -0700 (PDT)

Kathy continued with Nolan and did not finish.? Nolan is likely to continue
until Friday.? As a result, Izower's deposition has been taken off calendar
for this Friday.

Highlights:

--Kathy spent the bulk of the morning walking Nolan through videos that SDI
personnel took of the poor quality steel being produced at the plant.

--Kathy continued to elicit testimony regarding the problems with the quality
of the steel and the operations of the plant, e.g. Nolan testified that NSM
had $25 million in scrap sitting on the ground and no money to buy pig iron
or spare parts.? (Kathy's point was that NSM spent far to much on scrap
leaving no funds for other necessary items).

--Kathy spent alot of time with Nolan on a meeting that took place in SDI's
offices on Aug. 21 between Busse, Nolan, Bob Walters, Brian Barth, Kevin
McConville and Stickler.? Nolan's handwritten notes of the meeting suggested
that the group decided to abandon the filing of the F-1 and F-4 Registration
Statements with the SEC in order to avoid having to disclose NSM's current
state of affairs.? Nolan did not have a good recollection of the meeting.?
Shortly after this meeting, Busse's lawyer sent a letter to White & Case
indicating that Busse would not sign the Registration Statement.? Nolan's
notes also indicated that Bob Walters reviewed a letter to him from Busse
that has appeared on SDI's privilege log.? Kathy made a formal request for
the document on grounds that the presence of Barth, McConville and Stickler
at the meeting destroyed any attorney client privilege between Busse and his
lawyer.? Gindler refused to produce it on grounds of privilege. (we haven't
heard the end of this issue).



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