Re: Financial Swap

----- Forwarded by Brent Hendry/NA/Enron on 11/29/2000 04:46 PM -----

Brent Hendry
11/29/2000 04:45 PM

To: D'Arcy Carroll/SA/Enron@Enron, trandyyoung/sa/enron@ECT, Sara
Shackleton/HOU/ECT@ECT
cc: Lynn Aven/NA/Enron@Enron, Paul Radous/Corp/Enron@ENRON
Subject: Re: Financial Swap - Aracruz

We had concluded early on in our due diligence in Brazil that financial
transactions should be conducted offshore by both the Brazilian entity and
Enron. However, we have not conducted any due diligence on Panama to
determine if Panamanian counterparties can enter into derivative transactions
with ENA. Are there any other offshore subsidiaries in any other
jurisdictions that could be used for this trade?

Is this due diligence something that you want to move forward on or is the
deal still in the early stages? I would guess that the due diligence could
cost around $15,000 to $25,000 and could take from one to two weeks to
complete and there would be no guarantee that financial transactions would be
allowed.

Randy, do you know of any counsel in Panama that Enron has worked with in the
past?

Regards,
Brent

Sara Shackleton@ECT
11/29/2000 03:53 PM

To: Brent Hendry/NA/Enron@Enron
cc: D'Arcy Carroll/SA/Enron@Enron
Subject: Financial Swap - Aracruz

per my voice mail
----- Forwarded by Sara Shackleton/HOU/ECT on 11/29/2000 03:52 PM -----

D'Arcy Carroll@ENRON
11/29/2000 04:32 PM

To: Randy Young/ENRON_DEVELOPMENT@ECT
cc: Sara Shackleton@ECT
Subject: Financial Swap - Aracruz

Randy/Sara,

Please confirm if Enron can or cannot execute a financial swap with Aracruz
Brazil.

Alternatively, we need input on Enron's ability to execute a financial swap
for pulp with Aracruz's off-shore, Panamanian subsidiary.

We are trying to prep for a discussion scheduled for tomorrow, Thursday
afternoon, Sao Paulo time (4 hours ahead of Houston).

Thanks your help.