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Enron Mail |
Bankruptcy in California; Implications for our Growth Energy Names
* We would not sell Energy Merchants/Power Producers on news that PCG has declared Chapter 11 bankruptcy. * Ongoing payments in California are being made by the state; therefore do not anticipate material exposure for ongoing earnings. * Primary exposure is current receivables: (1) these one-time amounts are limited (roughly estimate max. of 50% of 2001 earnings); and (2) we expect that, as trade creditors, they will get high priority in a bankruptcy proceeding. We think most of these amounts are likely to be recoverable, although a significant (perhaps several year) delay is possible as these claimants work their way through the bankruptcy process. * By our rough estimation, companies with fairly significant one-time earnings exposure include: NRG, MIR, DYN, CPN. Companies with fairly small exposure include: ENE, AES, WMB, EPG and DUK. <<PCG bankruptcy 4-9-01.pdf<< <<PCG bankruptcy 4-9-01.doc<< Raymond C. Niles Power/Natural Gas Research Salomon Smith Barney (212) 816-2807 ray.niles@ssmb.com s - PCG bankruptcy 4-9-01.pdf - PCG bankruptcy 4-9-01.doc
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