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Enron Mail |
To all:
As of today, Bridgeline has $14MM of cash and expects to get $15MM from the payment of Oct receivables by the end of the month. They have fully drawn down the $35MM revolver that we put in place earlier this year. Trevor Mihalik (Bridgeline CFO) is preparing a cashflow forecast for Bridgeline from now to the end of the year and next year. Bridgeline's major cash needs are to fund working capital (payables and margin calls) and to purchase gas that must be used to dewater the storage cavern (Enron #1) that we contributed to the partnership. The dewatering process is now underway and will be completed mid-March 2002. At a gas price of $2.50 and, working gas volume of 6 bcf, the total cash need for working gas will be approx. $15MM. We are working with Bridgeline to find other sources of financing for the working gas that would enable them to make (and accelerate) the 2001 cash distribution to the partners. Alternatives we are considering to fund the working gas: (i) increase the revolver from $35MM to $70MM, (ii) find third parties (Enron ?) to enter into park-and-lend arrangements that would give Bridgeline the physical gas they need to dewater the facility without having to pay cash for it. Most options will require Chevron/Texaco approval, which may come at a price. I will distribute the cash flow statement when I receive it and Jean and I will meet with Randy and Trevor next week to discuss alternative financing/park-and-lend arrangements. I have been cloaking my questions on the need for cash under the guise of putting together the 2002 plan (budget, headcount, capital needs, insurance requirements, etc.). We should adhere to this commercial context so that we don't provide leverage to Bridgeline and Chevron/Texaco in any commercial discussions. I will admit, however, given the headlines, it does not take a genius to figure out we need cash. Regards, Brian -----Original Message----- From: Kitchen, Louise Sent: Friday, October 26, 2001 8:46 AM To: Hodges, Georganne Cc: Colwell, Wes; Redmond, Brian Subject: RE: Bridgeline Cash and AR Brian Redmond is working this -----Original Message----- From: Hodges, Georganne Sent: Thursday, October 25, 2001 5:06 PM To: Kitchen, Louise Cc: Colwell, Wes Subject: FW: Bridgeline Cash and AR Importance: High I am not sure when we received our last cash distribution from Bridgeline but will check. Should we pursue? -----Original Message----- From: Gruesen, Karen Sent: Thursday, October 25, 2001 5:03 PM To: Hodges, Georganne Subject: FW: Bridgeline Cash and AR -----Original Message----- From: Schwarzbach, Emily Sent: Thursday, October 25, 2001 4:41 PM To: Gruesen, Karen Subject: Bridgeline Cash and AR Karen, The following are the Bridgeline account balances as of 9/30/01 that you requested: Cash - $34,374,000 AR - $88,224,562 If you have any further questions or need additional information please let me know. Thank you. Emily
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