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Enron Mail |
FYI
----- Forwarded by Sara Shackleton/HOU/ECT on 07/10/2000 08:36 AM ----- Stuart Zisman 07/10/2000 08:28 AM To: Sara Shackleton/HOU/ECT@ECT cc: Subject: Fwd: Newsprint Swap Agreement Attached is an email that I received regarding the Garden State SWAP. Stuart ----- Forwarded by Stuart Zisman/HOU/ECT on 07/10/2000 08:28 AM ----- "GEORGE T. LEE" <GTLEE@LLGM.COM< 07/09/2000 10:21 PM To: <finley.biggerstaff@enron.com<, <JOE.jure@enron.com<, <Peter.del.Vecchio@enron.com<, <Stuart.Zisman@enron.com<, "JOHN G KLAUBERG" <JKLAUBER@LLGM.COM< cc: "BENJAMIN G. CLARK" <BGCLARK@LLGM.COM< Subject: Fwd: Newsprint Swap Agreement Please see the attached comments from Media General on the Swap agreement Content-Transfer-Encoding: quoted-printable Received: from proxysvr.llgm.com ([10.4.218.42]) by LLGM.COM; Sun, 09 Jul 2000 21:52:38 -0400 Received: from 10.4.218.25 by proxysvr.llgm.com (InterScan E-Mail VirusWall NT); Sun, 09 Jul 2000 21:53:07 -0400 (Eastern Daylight Time) Received: from gateway.llgm.com (root@localhost) by gateway.llgm.com with ESMTP id VAA06190 for <gtlee@llgm.com<; Sun, 9 Jul 2000 21:55:09 -0400 (EDT) From: jbyrnes@dlalaw.com Received: from dcntwebsh.dlalaw.com (mail2.dlalaw.com [12.17.22.10]) by gateway.llgm.com with SMTP id VAA06180 for <gtlee@llgm.com<; Sun, 9 Jul 2000 21:55:08 -0400 (EDT) Received: FROM dcnteml01.dlalaw.com BY dcntwebsh.dlalaw.com ; Sun Jul 09 21:54:26 2000 -0400 Received: by DCNTEML01 with Internet Mail Service (5.5.2650.21) id <N5L23C4L<; Sun, 9 Jul 2000 21:54:13 -0400 Message-ID: <45D7D4DF6C67D2119A020008C7A4AC770327B3F8@DCNTEML01< To: gtlee@llgm.com Subject: Newsprint Swap Agreement Date: Sun, 9 Jul 2000 21:54:11 -0400 X-Mailer: Internet Mail Service (5.5.2650.21) Mime-Version: 1.0 Content-Type: text/plain; charset=US-ASCII Content-Disposition: inline George, I'm not sure if you're the right person to send the comments to, but Media General has the following comments on the Newsprint Swap Agreement. Schedule to Master Agreement 1. Media General wants the cross-default to be reciprocal at $100 million for both Media General and Enron. 2. Further, Media General thinks that this should be a cross-acceleration, not a cross-default. 3. Page 3 of Schedule. The "date by which to be delivered" for Party B should track the same with Party A: i.e., if financials are available on EDGAR then they would not be automatically provided by MG on a quarterly basis. 4. Page 4 of Schedule. Under (a), add "Attn.: Chief Financial Officer". We will send Marshall Morton's fax and telephone numbers. 5. We will let you know who will serve as process agent. We would like to talk about governing law in Texas and the site of arbitration in Houston. 6. Page 6 of Schedule. In clause(b)(g), please note that MG intends to assign this agreement and we want to make sure that does not affect this representation. 7.Page 8 of Schedule. MG wants the right to assign this agreement to a party with a credit agreement equivalent to a certain level. We can discuss what that level should be. We should discuss what Enron's credit rating is in this connection. Transaction Confirmation Document. 1. MG does not think this transaction should be characterized as a "swaption". This was to be a deal for the purchase of newsprint at a fixed price, not at Enron's option. 2. We want todiscuss the expiration date. We should also discuss the other dates and terms which are blank. On page 2, under "Additional Provisions", the date for satisfying conditions is clearly wrong since it refers to July 5. Once again, all of this ties in with not being an option, but a fixed agreement. 3. We would like to have Enron render a monthly settlement statement with a net amount being paidto/receivable from MG. No netting is presently provided for in the agreement. ISDA Credit Support Annex MG would like to delete this entirely and would propose that Enron would rely on the general cross-acceleration provisions. Media General never contemplated credit provisions more onerous than its credit agreements. I will have the Media General business people follow up with the people at Enron, but could you please have some one get in touch with me on this. Thanks, John
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