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Enron Mail |
Rod:
Do you and Diana have a copy of the ISDA master between ENA and Kaiser? If not, here is a summary of some of the Kaiser credit related provisions: 1. $30,000,000 cross default threshold 2. MAC Event of Default - As to Kaiser, a MAC occurs if either an Event of Default occurs under the 2/15/94 Credit Agreement with BankAmerica or its credit rating drops to B- or below by S&P and B3 or below by Moody's. In each case, if they deliver collateral, no Event of Default occurs. 3. Collateral Threshold equal to ENA's Net Exposure which goes to zero if a MAC occurs and there is a failure to deliver collateral within 90 days or an Event of Default occurs. 4. $1,000,000 rounding amounts With respect to setoff rights, I spoke with David Mitchell about this and if it turns out that both types of swap transactions are done with the same Kaiser entity but different Enron entities and the metals ISDA has appropriate setoff language, then we feel fairly comfortable that upon a Kaiser bankruptcy filing in the US, we would be able to exercise setoff rights. What is the next step? Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com Roderick Nelson/Enron@EUEnronXGate 05/25/2001 09:15 AM To: Carol St Clair/HOU/ECT@ECT, Diana Higgins/Enron@EUEnronXGate cc: Subject: RE: Kaiser Hi Carol. Great to hear from you. I hope all is going well. Diana Higgins who is a manager (credit) in the metal area will be the principal credit person. I would say that Kaiser is a low grade credit and the contract should be robust with early termination and collateral rights. -----Original Message----- From: St Clair, Carol Sent: 25 May 2001 15:02 To: Nelson, Roderick; Simons, Paul Cc: Shackleton, Sara Subject: Kaiser Importance: High Rod and Paul: I have checked the ISDA between Kaiser and ENA and it has our standard setoff language which permits setoff of amounts owed by or to the Non-Defaulting Party and its Affiliates against amounts owed by or to the Defaulting Party under the ISDA and other agreements. Please call me once you have located the Metals agreement as Greg indicated to me in a voice mail that he needs an answer this morning. Rod, If we get comfortable on the legal side with this arrangement, are there other credit issues that need to be considered? Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com
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