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Please see below
We can get comfortable without a guarantee; Carol please look at pg 22 paragraph 2 of the 10K report. Also please se answers to questions below. -----Original Message----- From: St Clair, Carol Sent: Wednesday, May 30, 2001 8:55 AM To: Ernst, Nicholas Cc: Stoler, Lou; North, Carol; Curry, Ken Subject: Re: AK steel Nick: Thanks. Just a few questions for Carol and Ken: 1. Will there still be a MAC trigger and if so, will it remain at the parent level? Yes, and it will remain at the parent level 2. I am assuming that we still want to receive Holdings" financials. Yes we want AK Holdings financials, we also want a representation in the contract that states that AK Holdings financials are the same as AK Steel's financials because it is the only wholly owned subsidiary of AK Holdings. 3. Sounds like what we want AK Steel to say is that it will remain as the only subsidiary of Holdings. Is that the concept that you want them to covenant about in the ISDA? I would suggest doing it as a covenant so that it would lead to an Event of Default if it is violated. Does anyone have any thoughts on this? Yes we want to say that if AK Steel is NOT the only wholly owned sub, then it is an event of default. It can be cured by a parent guarantee or by providing independent financial statements for AK Steel. Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com Nick Ernst/ENRON@enronXgate 05/29/2001 07:24 PM To: Carol St Clair/HOU/ECT@ECT cc: Subject: AK steel Credit said that they will wave the parent guarantee. The provision will be waved if AK Steel states, whether in financial documents or by written letter, that every entity within AK Steel Holding is also every entity within AK Steel Corp. I have passed this on my contact in AK Steel's Treasury and they are going to get back to me. I will be on the road tomorrow but you can leave me a voicemail with any questions. Nick
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