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Enron Mail |
Veronica,
The credit language is only one of many areas of disagreement between the consultants view of what the contract should look like and our version. Their last response was that the MAC would be triggered if Enron Corp. fell below an A rating. I informed them that we could not agree because it was my understanding that Enron Corp. was currently rated as BBB. I will let you know if you need to be involved in the contract negotiation or non-negotiation in the future. I do not currently have a response from the consultant as to our last position on her nonagreement to make the necessary changes so that we could agree to document the 3month deal. Veronica Espinoza@ENRON 12/01/2000 02:30 PM To: Dan J Hyvl/HOU/ECT@ECT cc: Debra Perlingiere/HOU/ECT@ECT Subject: WPS: redline version Dan, I've looked through the contract (at least the credit terms). Of course I prefer to keep our credit language w/ the mac language of ratings decline. I am not too familiar w/ the transaction itself. I simply feel that if it truly is just a 3 month transaction, we may not need to 1) argue this much further and add special language to a confirm 2) issue out a $10MM gty (or if we do make it valid for only the three month term as it ties to the contract itself) Please let me know what you think. The marketer and the counterparty contact on the deal have been calling me for a response. Veronica ---------------------- Forwarded by Veronica Espinoza/Corp/Enron on 12/01/2000 02:21 PM --------------------------- "Kim Decell" <kdecell@gassupplyconsulting.com< on 12/01/2000 02:27:22 PM To: <veronica.espinoza@enron.com< cc: Subject: WPS: redline version Veronica, Attached is a redline version of the entire contract with Wisconsin Public Service. It includes all the changes requested by Dan Hyvl. It has been edited with my counter (i.e. - striking what not acceptable/relevant and providing underlined substitute). One thing I'd like you to consider in your review is the term and scope of this contract. The contract is for 12/00 - 2/01, 3 months, only. Furthermore, the contract language covers just this transaction - it is NOT the base document for future transactions. I will begin work with Enron early next year on a Master Contract to cover all future transactions. With that in mind, I'd like to suggest that we remove any reference to a Material Adverse Change. It is currently a new and unsettling concept to WPS, particularly their Credit Dept. Given that (1) the contract is short duration and (2) it is extremely unlikely that WPS will fall even to a BBB ratings within this time period, I feel removal of this language would greatly improve the chances of getting a meaningful contract in place quickly (note today is the effective date). I will work with WPS on this concept for the future Master Contract. I am leaving for lunch but will be back shortly. Thanks for your help with this. Gas Supply Consulting, Inc. (281)558-0735 kdecell@gassupplyconsulting.com - WPS Enron redline response COMPARE GSC counter.doc
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