Credit from brokers

ENE is in a severe liquidity crisis. Even if EDF makes mistakes we have to be careful how we treat them because Enron's cash position is very precarious. It's good to insist that EDF give us what's owed especially since they seem to be wrong in this case but as far as lines of credit go, ENE is in a much worse position than ever before.

I am going to get a guarantee to Fimat today from Enron Corp with respect to ENA trades. We have never had to do this before but if I do not get it Fimat will keep their trade line at $11 million. Soc Gen (extends credit under Fimat line) is being a big pain but having spoken to our bank people we have no choice but to be grateful we are getting credit these days.

Please keep this bad cash/credit situation confidential.