|
|
Enron Mail |
This afternoon in 2 separate negotiations I reached verbal agreements w/ both
Vossler and Furlow to settle the open accounts payables as follows: Vossler The total settlement amount = $210,000.00 Ecogas will make a $68,000.00 one-time payment on 3/16/00 The balance of $142,000.000 will be amortized over 2 years at 10% apr paid monthly by the 15th of each month starting in April 00. (est monthly payment = $6552.58) Furlow - Dallas Settlement amount = $370,125.00 Ecogas will make a one-time payment = $50,000.00 on 3/16/00 Balance of $370,125.00 amortized over 2 years @ 11% paid monthly by the 15th (est monthly payment = $17,250.73) starting 4/15/00 Ecogas will assume direct responsibility for paying off any unpaid sub-contractors on case by case basis. These areas follows: Nations Rent $8,464 B&R Development $74,124 M&M Supply $18,910 Prewitt Insulation $11,381 Total: $117,353 5. Tom Hall (Ecogas) will confirm w/ Joe Furlow the status of the unpaid creditors. Furlow - San Antonio S.A. is not so easy. However, pending resolution of the following issues, we expect a structure similar to Dallas: Rick Carson/Herman Manis provide update re: current operational and accounting audits of the project Joe Furlow/Tom Hall to verify status of unpaid contractors listed below: Alamo concrete $16,090 A&L Sandblasting $22,686 Cato Drilling $11,150 Total: $49,926 Doug Daniels (Bracewell Patterson) to coordinate and comply w/ various info requests from Furlow's counsel as appropriate Miles Cohn (Furlow counsel) will provide actual legal costs to date to be included in the overall settlement Tom Hall will verify status of any equipment, work, etc... currently invoiced but not yet delivered to the site Ecogas and Furlow to resolve ultimate settlement amount (i.e., resolution of disputed amounts) Assuming the current amount is undisputed (we think it could be as much as $100K less) the following represents the settlement structure at S.A.: current settlement amount claimed by Furlow = $412,989.00 (potentially $100K in dispute) $50,000.00 one-time payment on 3/16/00 (regardless of the final settlement amount) Balance of $362,989.00 amortized over 2 years @ 11% paid monthly by the 15th (est monthly payment = $16,918.13) starting 4/15/00 Ecogas will assume direct responsibility for paying off any unpaid sub-contractors on case by case basis. Summary of both settlements: Payments totalling $168,000.00 due on 3/16/00 Total estimated monthly payments of $40,721.44 due on 15th each month starting 4/15/00 Ecogas assumption of paying off sub-contractors total = $167,279.00 (I recommend paying them off pro-rata in 6 installments totalling $27,879.83 (est. pending verification) starting March of April 15. Felipe will need to contact each AFTER WE'VE FINALIZED THE FURLOW ISSUES AND DISCUSSED INTERNALLY. This would result in a monthly total payment of $68,601.27 for the first 6 months. Obviously, all of these need to be incorporated into the bi-weekly draw request process starting w/ the 3/16/00 draw. Key issues are a) we've avoided at least 2 litigations (probably more with the sub-contractors), b) we've gotten some much needed breathing room, c) we've started down the road of rebuilding industry relationships, d) we reduced our total liabilities significantly (in both cases I got the counter-party to concede some monetary value thru interest rate concessions, disputed amounts, etc... and e) we've done the right thing (of which I'm most proud)! CAUTION! NO ONE SHOULD MAKE ANY REPRESENTATIONS TO ANY CREDITORS WITHOUT DISCUSSING IT MYSELF OR KELLY MAHMOUD FIRST!!!!! Thanks for everybody's help and please respond to your respective action items re: Furlow - San Antonio ASAP!
|