Re: Sutton Bridge

Rod forwarded everything to Samantha Boyd.
----- Forwarded by Kaye Ellis/HOU/ECT on 07/13/2000 02:43 PM -----

Rod Nelson
07/13/2000 09:32 AM

To: Sheila Glover/HOU/ECT@ECT
cc: Trena McFarland/LON/ECT@ECT, Sara Shackleton/HOU/ECT@ECT, Clara
Carrington/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT, Samantha Boyd/NA/Enron@Enron
Subject: Re: Sutton Bridge

No incremental credit reserve will be required, provided the transaction is
assigned directly to EDF/London Electricity or to an affiliate with parental
guaranty.

Rod

From: Sheila Glover 07/13/2000 08:34 AM

To: Trena McFarland/LON/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Sara
Shackleton/HOU/ECT@ECT
cc: Clara Carrington/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT, Samantha
Boyd/NA/Enron@Enron
Subject: Sutton Bridge

Trena,
No P&L impact on unwinding deals, swap and hedge are Back to back
Do we have a contact to book the trades on the EDF side when appropriate?
Sara
Sara, Laurel will request copies of the original confirmations for the swap
and hedge and forwad to you
Need to coordinate day of unwind on ENA and rebooking by EDF based upon Legal
reassignment
Rod
Please advise whether a credit reserve was taken on this deal.
Thanks. Sheila

---------------------- Forwarded by Sheila Glover/HOU/ECT on 07/13/2000 08:19
AM ---------------------------

Trena McFarland
07/13/2000 05:48 AM
To: Sheila Glover/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Sara
Shackleton/HOU/ECT@ECT
cc:
Subject:

Everybody

Further to the sell-down of Sutton Bridge it looks like the originators are
planning, as part of that deal to assign infinity deal number 25556, a
currency swap we have with Sutton Bridge to EDF/London Electricity. The
hedge for this deal is a back to back deal with Natwest, infinity deal number
25555.

My questions are:
When this swap was originally entered into there would have been a credit
reserve taken for it, which will have to be released. How much is this and
what is the process? I am assuming this release of credit will not effect my
traders P&L. Can you please confirm this.

What else do we need to look at to complete this assignment? What are the
legal implications?

The originator is looking to do this fairly quickly and so a quick response
would be greatly appreciated.

Thanks
Trena