Perry Gas

I know this is but a nuisance at this time, but a credible buyer of claims
-- Liquidity Solutions -- has made a written offer to purchase the 3 Enron
claims in the Perry Gas case at 40% of the claim. Because of the size of
the 3 claims (ENA, EES, and Clinton), the amount of money that this would
raise is well over $2 million if my memory serves. Yesterday, Liquidity
Solutions called again and increased its offer to 45%.

Perry Gas is still predicting a payout in the 55% range, but that payout
will be over time given that there is litigation going on that needs to be
resolved before all payouts can be made.

Because ENA, EES, and Clinton all have "allowed" claims, many of the risks
(and hassles) associated with selling claims is removed.

I have sent the proposed 40% offers to Jim Keller, Michael Tribolet, and
you, but -- understandably -- have heard nothing back.

I just wanted to remind you that this is out there if you have any interest
in liquidating your Perry Gas claims at this point. Given that the payout
will probably take another 12 months, the last dollars would go to Dynegy.
If asked for my recommendation, it would be to sell them at this point.

I'm happy to give you more exact numbers of the amount of the claims and
what the payout would be if you're interested. Thanks so much.

I'll call later about setting up a meeting. Thanks.

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