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Enron Mail |
Here is a trade for you. According to the Master Agreement, all technology=
equipment on Schedule 27 was being conveyed to UBS. All FF&E on Schedule = 18 was not. It turns out that the Estate in Portland needs some of the tec= hnology equipment on Schedule 27. This includes servers, computers, printe= rs, etc. We need some of the stuff on Schedule 18 such as the desks and ch= airs. We are guaranteed use of this stuff so long as we stay in this build= ing. Therefore, we could use it forever for free if we chose to stay here.= It seems that we have a fair trade here. If you don't convey this equipm= ent to us the only effect is that you will likely prevent us from moving as= it will be too expensive!!! An option to buy the equipment from the estat= e is essentially a worthless option. The furiture will have little value t= o the estate and may be a liability as demand for that stuff in Portland is= low and the cost to move is high (e.g., in Mexico shutting down the office= cost $40k plus storage fees to move furniture into storage). Furthermore,= I have no reason to believe that an accounting firm working for the estate= will give us a "fair" value on the furniture. We don't want any furniture= from the 4th floor that the estate will need. Bottom line, we can give th= e estate computers and servers and they can keep the fourth floor furniture= and everything will work well for them. We give up some computers and ser= vers to the estate but keep the furniture on the 3rd floor. Everyone is ha= ppy and it makes economic sense. Let's just do this trade that makes sense for everybody. -----Original Message----- From: Daniels, Eddy=20 Sent: Wednesday, February 06, 2002 8:45 AM To: Belden, Tim; Kitchen, Louise Subject: RE: More Portland Issues I have asked Jeff Golden and Don Miller. Don is leaning towards giving UBS= a purchase option at fair market value. Though I haven't heard from Jeff,= he could decide to "give" UBS the FF&E now, but he'd probably need to trad= e it for something else he wants. -----Original Message----- From: Belden, Tim=20 Sent: Tuesday, February 05, 2002 6:22 PM To: Daniels, Eddy; Kitchen, Louise Subject: More Portland Issues It was just brought to my attention by Dave Steiner that the Estate will co= ntinue to own the F(urniture), F(ixtures), and E(quipment) and that UBS wil= l be able to use it for free so long as we are in this building. As you both know, it is possible that we will move from this floor and woul= d like to take a good portion of the FFE with us. My understanding is that= Enron is leasing the furniture in Houston and owns the furniture in Portla= nd. Therefore, it makes sense for the Houston office to continue to use th= e furniture but not move it. It doesn't make as much sense here as it will= be expensive for the Estate to dispose of the furniture here and it will b= e even more expensive to move it to sell it. Here's the issue -- the Estate should convey the furniture in Portland to U= BS. Is this possible? What do we need to do to make this happen?
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