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Enron Mail |
fyi. michelle has the kelly role at the end been discussed with you or are we
covered re consulting agreement?? Lisa J. Mellencamp Enron North America Corp. 1400 Smith St. Houston, TX 77002 Tel: (713) 853-7986 Fax: (713) 646-3393 E-mail: Lisa.Mellencamp@enron.com ----- Forwarded by Lisa Mellencamp/HOU/ECT on 10/25/2000 08:52 AM ----- Randal Maffett 10/24/2000 05:40 PM To: jerrel@ecogas.com, jerrel@rmisp.com, Jeff Donahue/HOU/ECT@ECT, Andrea V Reed/HOU/ECT@ECT cc: sjham84@aol.com, kmahmoud@austin.rr.com, kelly.mahmoud@enron.com, rstephens@bracepatt.com, Lisa Mellencamp/HOU/ECT@ECT Subject: Status update Selexol Plant - has been sold to Tanoma for $200K. Wire transfer received today. I have called Montauk and informed them and withdrawn from further negotiations with them. FYI - we never accepted their offer. Austin PPA - was sold to EDI for $150K. Wire transfer received yesterday. Steve and Geoff are pursuing the sale of the blower and flare from the Austin project, potential $30K. Current cash projection (based solely on money in the bank) through the week ending Nov. 3 is + $135K. The rent for the Austin office for Oct has been paid. This number also includes $20K for Nov's rent (due 11/1). This provides some breathing room (time-wise) to continue trying to execute the strategy of an orderly liquidation in order to maximize Ecogas' ability to satisfy its obligations with its creditors. Our meeting today with ZAPCO re: the purchase of the company via a stock swap went ok but my confidence level a deal can be done in the timeframe required is very low due to complications on their part. We are exploring another structural option - at ZAPCO's request. The ball is in their court and they know we are continuing to pursue other alternatives. Discussions with Inter-Asia Venture Management (IAVM) continue to both progress and expand. In addition to Rosenberg IAVM has expressed a direct interest in Ecovest and McCommas. Considering McCommas represents the bulk of current value, IAVM has now elevated their interest to buying Ecogas Corp. as a whole rather than on a piecemeal basis. Again, the ball is in their court and they are demonstrating a real sense of urgency to make something happen. They are well aware of the time constraints. Frito-Lay/McCommas Bluff - F/L senior management does not want to "get into the landfill energy business" (at least directly) and brought in a third party intermediary. After detailed discussions and due diligence on their part, the third party was not willing to put forth a formal offer. Their intermediary does not have the capital to close the deal and is not willing to put his current assets at risk. As a result, we have escalated discussions with another entity who could provide the same interface with F/L and whom would be acceptable by F/L. This will also be dependent on the probability of the IAVM and/or ZAPCO discussion referenced above. Skyline/Westside - a bid request package was sent out to approximately 8 or 9 industry participants with bids due 10/23. To date only one company responded with a very low bid and a lot of "contingencies." There are at least 2 other companies who called and expressed interest in bidding but have not yet submitted their bids. EDI has requested permission to visit with WMI directly and get a read on the Gas Rights Agreements and their willingness to work with them. At this point, I don't think we should agree. Depending on how discussions with IAVM and/or ZAPCO progress, this will require a judgement call as to whether or not we should proceed with this transaction. Any input from the rest? FYI - Felipe Vega, the controller for Ecogas, has tendered his resignation effective Monday, Oct. 30. Kelly Mahmoud will assume the necessary role to keep things in order. Given the updates above, we are still pursuing parallel and simultaneous paths of either selling the company outright or strategically liquidating assets with our focus on McCommas Bluff. Feel free to call if you have any questions or would like to discuss in more detail.
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