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Enron Mail |
Salerno Swap Agreement =01) Discussion Timeline
Salerno deal: 6 months, Nov =01,00 =01) Apr =01,01, LLDPE swap sold at 39.5= cpp basis=20 CMAI mid. Deal discussed Oct 2-6, verbal agreement was reached on the 5th. Faxed=20 non-binding indication sheet initialed by Bob Lampo on Oct 5. 10/03, Tues: Salerno calls requesting quote, we quote verbally a couple hou= rs=20 later that same day. 10/05, Thur: Conversations during which Bob negotiates price and we hold=20 firm. Also conversations during which I question him about whether or not = he=01, s back to backing the deal and what are his motivations for entering into t= he=20 deal. He wouldn't elucidate on any of the questions. Finally discussions= =20 regarding the need for a credit check, and the likely requirement for an LC= . =20 He asked at that point how large an LC would be required, I informed that I= =20 didn=01,t know but that it depended on credit=01,s review of his business a= nd of=20 our forward view on the market. We agreed on price and all commercial=20 terms. I informed that I would fax an indication sheet and that he should= =20 initial it then return it to me by fax to indicate his approval of the deal= . =20 He did so. 10/11, Wed: conversation regarding financial docs being sent to credit=20 (details in tape transcript). 10/17, 19 or 20: messages from Bob asking for clarification on the confirm.= =20 Message from me roughly explaining the salient points of the confirm. =20 Subsequent conversation sharing the good news that he=01,d been granted a c= redit=20 line of $250k and for exposure beyond that he=01,d have to post an LC. No= =20 indication of any refusal of our terms at that point (details once tapes=20 reviewed).=20 10/23-27: no conversations that I can recall 10/30, Mon: Received Salerno message communicating intention to renege=20 (vacation day) 10/31, Tue: Legal advised. Bob=01,s message forwarded 11/1, Wed: travelling..msg left with Bob Lampo at Salerno stating that our= =20 position was that a deal was in place as he faxed to us our term sheet with= =20 his initials and we had done a credit check giving him a line of credit. 11/2, Thu: Confirms sent to legal 11/3, Fri: Legal calls Salerno. Message left. 11/6-9, Mon to Thu: messages traded with legal 11/10, Fri: Legal recommends pulling the tapes.=20 11/14, Tues: Legal calls Salerno. Message left. Bob responds with his own= =20 message. Bob doesn=01,t dispute price but does dispute credit terms and us= es=20 this as basis to drop the deal. Tapes received. Transcripts of Nov 11= =20 conversation made. Additional tapes requested for 10-16, 19, 20. 11/16, Thur: Meeting with Richard, Sara, Jay, Doug and Alan. Message left= =20 with Bob Lampo informing that we were willing to work with him on addressin= g=20 his credit issues. Call not yet returned.
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