Enron Mail

From:tim.belden@enron.com
To:center.dl-portland@enron.com, francisco.dl-san@enron.com
Subject:Update
Cc:
Bcc:
Date:Fri, 30 Nov 2001 12:48:56 -0800 (PST)

There have been no "official" developments relating to Enron North America =
or the Portland office that I am aware of since the floor meeting on Wednes=
day. The news of the Europe office closing so suddenly has certainly been =
unsettling. Absent any tangible news pertaining to the fate of our office =
I thought that I could, at a minimum, try to explain to people what I've se=
en going on over the last couple of days.

On the trading side we are doing several things. First, we are trying to h=
onor as many of our physical delivery obligations as possible. Several cus=
tomers have stopped making deliveries to us which is making it impossible f=
or us, in turn, to honor all of our physical deliveries. In these circumst=
ances we are constantly updating our customers on the status of their sched=
ules so that they can make alternative arraingements. The Cash Trading, Sc=
heduling, Services, and Real Time groups are doing an unbelievable job with=
this. I am impressed at how capable, professional, and calm our team has =
remained. On the Term Trading side we are working with our customers to cl=
ose out positions. This process is going very smoothly as well. We traded=
a record volume yesterday as our customers reduced their exposure to us. =
The Term trading team has done an excellent job with this. Third, on the M=
iddle Market and Origination side we are trying to work with customers to b=
ring cash in the door. Many customers owe us money due to out of the money=
future positions. Many customers would prefer to settle up with us now ra=
ther than in bankruptcy if that is what ends up happening to us. We have b=
rought a significant amount of cash in the door as a result of these effort=
s and saved our customers from going through a potentially onerous bankrupt=
cy proceeding. I am very appreciative of the efforts of our Origination an=
d Middle Marketing team that has made this happen.

On the bright side, I remain optimistic that someone will buy or fund the N=
orth America gas and power businesses. While it is impossible to handicap =
anything these days with Enron I am seeing some very positive signs on this=
front. Unlike the Dynegy deal, which required Dynegy to purchase the very=
profitable core business along along with the rest of Enron's baggage, the=
deals being considered now would likely involve only the core business. I=
don't know whether these deals happen, and if they do, I don't know what f=
orm the core business takes as a result. Chris Calger and I have been part=
of the team talking to our potential suitors. We will both be in Houston =
through the weekend and into early next week working on this. We will upda=
te people as soon as possible as things unfold.

I know that this situation really sucks. Given the anxiety and uncertainty=
that we are all feeling people are doing a great job keeping focused and s=
taying positive. I think that things are going to unfold very quickly from=
here -- most likely in the next week or two. Please hang in there.

Tim
(on behalf of Tim and Chris)