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Enron Mail |
Hilary E. Ackermann Goldman Sachs Credit Risk Management & Advisory Phone: 212-902-3724 Fax: 212-428-1181 E-Mail: hilary.ackermann@gs.com Dear Mr. Lavorato: Following up on your and Ken Lay's conversation with Gary Cohn, I would like to forward the following proposal, acting for each of Goldman Sachs Capital Markets and J.Aron. < In order to provide Enron North America with additional liquidity, J. Aron < and GSCM have discussed entering into the following series of transactions < on terms to be agreed between each of the relevant parties: < < 1. Enron Corp./J. Aron - FX Option sold by Enron Corp. to J. Aron with a < settlement date of Dec 11, 01 would be settled on Nov 21, 01. < < 2. Enron NA/GSCM - Interest Rate Swap Portfolio - At Enron NA's option, < we would either (a) close out and portfolio on Nov 21, 01, resulting in a < payment from GSCM to Enron NA or (b) bilaterally reduce applicable margin < trigger from $10mm to zero, which based on current MTM would result in < $10mm of additional margin being paid by GSCM to Enron NA. < < Weather Derivative Transaction - Applicable margin trigger would be < reduced from $50mm to $5mm, which based on current MTM would result in < ~$18mm of margin being paid by GSCM to Enron NA. < < 3. Enron NA/J. Aron - Financial Derivative Portfolio - At Enron NA's < option, we would either (a) close out and portfolio on Nov 21, 01, < resulting in a payment from J. Aron to Enron NA or (b) bilaterally reduce < applicable margin trigger from $10mm to zero, which based on current MTM < would result in $10mm of additional margin being paid by J. Aron to Enron < NA. < < Physical Natural Gas Receivable - In consideration of the foregoing, Enron < NA would settle $10.5mm physical natural gas receivable for value Nov 21, < 01. < Please call me at the number below at your soonest convenience to discuss further. Thank you. Hilary E. Ackermann Goldman Sachs Credit Risk Management & Advisory Phone: 212-902-3724 Fax: 212-428-1181 E-Mail: hilary.ackermann@gs.com
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