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Enron Mail |
Let's talk in the a.m.
Sara Shackleton Enron North America Corp. 1400 Smith Street, EB 3801a Houston, Texas 77002 713-853-5620 (phone) 713-646-3490 (fax) sara.shackleton@enron.com Paul Radous/ENRON@enronXgate 03/06/2001 12:58 PM To: Sara Shackleton/HOU/ECT@ECT cc: Subject: Weyerhaueser Sara, Okay, looks to me like Weyerhaueser wants us to act as their counsel. I told Bill to propose the language he wanted, but he said his lawyer was out of town for two weeks. Which makes me wonder if they can even sign this thing without her consent, but I did not think to ask him this at the time. Anyway, he basically wants to add a third party guarantee as eligible credit support in the event of a downgrade. He said he is willing to include language indicating that the nondowngraded party would have to accept this guarantee, subject to a commercially reasonable objection. On its face, I have no objection to such a provision, but would like to quickly bounce it off of you. I'm not sure that I want to be forced to disclose what that reason is.... And basically, I also have no objection to allowing the posting of collateral in a form and amount acceptable to the nondowngraded party, with such amount subject to change as conditions warrant. Also, I thought we usually had assignability to affiliates so long as the guarantor remained the same. I think Bill indicated we probably removed that because we had it this way with the Canadian subsidiary. He wants to put it back in. I want it back in as well. Otherwise, we are increasing the guaranty amounts to $25MM, and they have agreed to the cross default provisions. Let's discuss this when you get a minute. He had some additional clarification he needed, but these seemed to be the legal issues on his list. I don't think there is going to be any way around this other than to call him and explain. Sorry. Paul -----Original Message----- From: "Bowman, Bill" <bill.bowman@weyerhaeuser.com<@ENRON [mailto:IMCEANOTES-+22Bowman+2C+20Bill+22+20+3Cbill+2Ebowman+40weyerhaeuser+2E com+3E+40ENRON@ENRON.com] Sent: Tuesday, March 06, 2001 11:50 AM To: Radous, Paul Subject: Provisions 1 - We would like the right to assign to another counterparty as well as Enron. Something within Weyerhaeuser. 2 - If Weyerhaeuser or Enron below investment grade, can Post collateral, Counterparty will act in a commercially reasonable manner Obtain a third party guarantee, Counterparty will act in a commercially reasonable manner Regards, Bill Bowman Phone - 253-924-3418 Fax - 253-924-3870 e-mail bill.bowman@weyerhaeuser.com All contents in this e-mail should be considered proprietary and treated in a confidential manner
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