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Enron Mail |
John Schultes is quite smart and very precise in his use of language.? Even
though he speaks with an accent, he is easy to understand and he is very careful with his words.? I thought he acquitted himself reasonably well under difficult conditions.? However, Schultes' natural demeanor is somewhat formal and aloof; I don't think a jury is going to like him.? At best they'll be neutral; they won't warm up to him. Schultes has sued McDonald and SDI in Cleveland, Ohio--apparently some sort of defamation and wrongful termination.? I am getting the complaint, will have it sent to you.? Schultes was deposed for three days a few weeks ago in that case.? We will try to get the transcript. Schultes is unemployed.? His defense is being paid for by AIG under a D&O policy. Kathy spent a lot of time on Schultes' response in 9/98 to Bob Walters 8/98 memo.? In his response Schultes acknowledged a number of shortcomings at NSM but took the position that everyone knew all about them at the time of the offering. KPMG wrote management letters in connection with NSM financial statements for the year ended 12/31/96 and the quarters ended 3/31/97 and 6/30/97--probably for later periods as well, like 12/31/97.? KPMG has produced documents.? We are getting them this week.? E&Y also did a special report for McDonald in the second half of 1997; McDonald has produced a copy.? E&Y is still fighting about producing its documents.? Schultes says he never saw the E&Y report. Enron came up twice today, not with much emphasis--both times dealing with events after the closing.? A memo of Brian's dated 7/28/98 relating to a Management Company meeting was discussed briefly.? The report or review that the Enron team prepared in August 1998 was discussed at a little more length.? Nothing harmful.? To date there has been virtually no testimony about any role of Enron or ECT in the underwriting process--just about all testimony has been about post-closing events. Kathy also pressed Schultes to admit that NSM's actual production of steel before the offering was quite limited.? Schultes quarreled with her a bit on this. This e-mail message may contain legally privileged and/or confidential information. If you are not the intended recipient(s), or the employee or agent responsible for delivery of this message to the intended recipient(s), you are hereby notified that any dissemination, distribution or copying of this e-mail message is strictly prohibited. If you have received this message in error, please immediately notify the sender and delete this e-mail message from your computer.
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