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Enron Mail |
John:
Please call me about this matter. Since it is a physical deal, I'll be helping Jane on this one. Alan John Suttle 11/27/2000 05:32 PM To: Jane McBride/AP/Enron@ENRON cc: Alan Aronowitz/HOU/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT, Sara Shackleton/HOU/ECT@ECT Subject: Re: credit for Nippon Chemi-con Sara - Can you please help Jane in putting credit language into the confirmation of a Japanese deal? I have provided a worksheet with credit provisions that would normally go into a master or an omnibus confirmation. In this case, it will be an omnibus. Please let me know if I can do anything from here. John Jane McBride@ENRON 11/27/2000 05:11 PM To: John Suttle/HOU/ECT@ECT cc: Alan Aronowitz/HOU/ECT@ECT, Mark Evans/Legal/LON/ECT@ECT Subject: Re: credit for Nippon Chemi-con Hi John, Thanks for this, just wondering though, how do you usually get from this sort of table to the actual provisions to include in the contract. Alan, Mark, is there any easy way to do this? Thanks. Jane John Suttle@ECT 2000/11/28 07:05 To: Morten E Pettersen/AP/Enron@Enron cc: Jane McBride/AP/Enron@Enron, Joseph P Hirl/AP/ENRON@ENRON Subject: credit for Nippon Chemi-con Morten Erik - I recommend the credit terms provided in the attached document to be included in the Nippon Chemi-con contract. These are industry standard terms for a counterparty with credentials such as Nippon-Chemi-con, and these industry standards are what will enable Enron to syndicate the credit risk if we decide to do so in the future. After my discussion with Jonathan last week, I think it is clear that Credit is on the same page with your team in that we recognize the importance of getting this first deal booked. I think that in proposing the terms of your transaction to the counterparty though, Enron can begin educating the market as to the nature of the credit risk imbedded in the deal structure, and in doing so, begin setting the same standards we have in our other portfolios. The attached credit terms are not set in stone, but I think they are a good place to start. I will make myself available to you and the counterparty to discuss the credit terms, and we will be very willing to negotiate the terms in good faith. My point is simply that we should not enter into any of these transactions without fully discussing the credit implications with the counterparty. Please feel free to call me or write if you have any questions or concerns. John x30906
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