In re Enron Petrochemicals Claim Against Underwriters

Steve,

This will confirm my and Richard's conference with you regarding going-forward strategy in this matter. Again, we recommend that we make the best case we can against Underwriters immediately, but do not recommend filing suit against Philchem or Baytank unless absolutely necessary to protect a statute of limitations prior to finalizing a settlement with Underwriters. Given the contract language, we just don't see that we are going to increase our recovery by filing suit against either Philchem or Baytank. There is a statute of limitations for a tort action against Baytank coming up November 1. You and I will be speaking with your supervisor tomorrow morning, and assuming that he agrees, I will immediately liaise with Jim about presenting the documents to Sharron West that she previously requested.

Britt