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Enron Mail |
Carol St. Clair
EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com ----- Forwarded by Carol St Clair/HOU/ECT on 06/06/2001 08:49 AM ----- Carol St Clair 06/05/2001 03:32 PM To: "Falconi, Jack (TIFS)" <Jack.Falconi@guarantygroup.com<@ENRON cc: Jim Crump/Enron@EnronXGate, Ken Curry/Enron@EnronXGate Subject: Re: IPPI ISDA - Response To 5/29 E-Mail Jack: Thanks for your e-mail. I met with our credit people this morning and can respond to some of the credit points raised in your May 16th memo: 1. With respect to item #2, I know of no case law on this point and our credit group cannot agree to delete this concept from the Collateral Threshold definition. 2. With respect to item #3, we can agree to define materially weaker the way you suggested with additional language that states that any drop below BBB- also counts as a trigger. 3. With respect to item #4, we can agree to a definition tied to an objective rate which my credit person is thinking about. 4. With respect to item #6, I'm waiting for my credit person to confirm that your comment is correct. 5. I understand from your latest e-mail that no changes will be made to the definition and use of affiliates in any of the agreements. 6. With respect to item #12, we can agree to increase our rounding amount to $500,000 and to limit "returns" of collateral to once a week. We cannot agree to change the frequency for requesting/delivering collateral. Given the high rounding intervals, we feel that unless there is a huge market change, it is unlikely that collateral requests will be made every day. 7. With respect to item #14, there is no requirement to escrow cash collateral that is being held and the Secured Party is free to do whatever it wants to with the cash until the events in 13(g)(ii) occur, in which case the cash collateral must be held by a Qualified Institution. 8. With respect to item #19, if we draw the entire amount of the LC and the termination amount that we are owed is less than the LC amount, we would be required under the documents to return any excess amount to you. All we are doing in an Event of Default situation is converting the LC into cash collateral that we hold subject to the terms of the documents. 9. We can agree to make the chnages that you requested in item #18. I still need some clarification on the point you were making in item #17 and I will look at your other comments in today's e-mail and respond shortly. Are you okay with the Enron and Inland forms of Guaranty? Carol St. Clair EB 3889 713-853-3989 (Phone) 713-646-3393 (Fax) carol.st.clair@enron.com "Falconi, Jack (TIFS)" <Jack.Falconi@guarantygroup.com< 06/05/2001 02:07 PM To: Carol.St.Clair@enron.com cc: Ken.Curry@enron.com Subject: IPPI ISDA - Response To 5/29 E-Mail Please acknowledge receipt. Thanx. <<IPPIISDA3.doc<< - IPPIISDA3.doc
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