Re: Bankruptcy Update

I don't know the Merit case. As for Badack, ENA has filed suit and moved for
Summary Judgment on liability.The hearing will take place in the next month.
On Thursday Oct 12th, I met with Badack's outside attys re settlement.
Badack offered $2.375 mm. ENA's last offer was $5.0mm. We agreed to exchange
additional offers. Is this update enough?

William S Bradford
10/11/2000 02:23 PM

To: Richard B Sanders/HOU/ECT@ECT, Peter Keohane/CAL/ECT@ECT
cc: Molly Harris/HOU/ECT@ECT, Wendi LeBrocq/Corp/Enron@Enron, Jeffrey T
Hodge/HOU/ECT@ECT
Subject: Bankruptcy Update

Richard/Peter,

As part of our portfolio insurance resporting requirement, we are
contractually obligated to provide updates on potential claims in our
portfolio. As such, please provide an update to the Badak Gas Marketing,
Inc. litigation status and Merit Energy Ltd. bankruptcy status respectively.

Your prompt attention to this issue would be appreciated.

Regards,
Bill