FW: Sempra Energy Trading

FYI, Kim.

-----Original Message-----
From: Y'barbo, Paul
Sent: Friday, January 11, 2002 3:05 PM
To: Watson, Kimberly
Subject: FW: Sempra Energy Trading

FYI
-----Original Message-----
From: Cherry, Paul
Sent: Friday, January 11, 2002 2:37 PM
To: Howard, Kevin A.
Cc: Y'barbo, Paul
Subject: RE: Sempra Energy Trading

Kevin,

In following up with the Chief Credit Officer ( who is out today ) another person ( Steven Tilley in Credit ) returned my call. He advised they were not impressed with the letter and that Bankruptcy was a possibility. I replied that this is the best that we could offer short of a guarantee and that no one can predict one/two years down the road. I offered our financials which they will send a CA. I believe it would help it you could discuss their issues. I explained that improving their status was not possible, but Tilley continued to pursue.

I have set a time on Monday at 8:30 CST for us to call Michael Sessa, Chief Credit Officer and Tilley.

Please advise if that will work for your schedule.

Regards.

-----Original Message-----
From: Howard, Kevin A.
Sent: Thursday, January 10, 2002 11:03 AM
To: Cherry, Paul
Subject: RE: Sempra Energy Trading

feel free to sign for me.They cannot obtain a more superior creditor status.

-----Original Message-----
From: Cherry, Paul
Sent: Thursday, January 10, 2002 10:21 AM
To: Howard, Kevin A.
Subject: FW: Sempra Energy Trading

Sorry for this omission. Sempra inquired could they obtain a more superior creditor status than normal?

Thanks.

-----Original Message-----
From: Cherry, Paul
Sent: Thursday, January 10, 2002 10:19 AM
To: Howard, Kevin A.
Subject: Sempra Energy Trading

Kevin,

I wanted to provide an update. The conversation went well. I am faxing the " letter " , have offered the CA for financials, and walked Sempra through TW. Upon the review of the letter they will get back with me if there are further questions. Also I offered your participation if needed. With your permission may I have your proxy to sign the letter?
As an FYI the people on the call were the counterpart of Paul Y and the Chief Credit Officer.

Will keep you posted.

Regards.