Enron Mail

To:mark.frevert@enron.com, greg.whalley@enron.com
Subject:FW: Dabhol -- A Brief Legal Update
Date:Mon, 21 May 2001 04:07:00 -0700 (PDT)

-----Original Message-----
From: Lundstrom, Bruce
Sent: Sunday, May 20, 2001 5:08 PM
To: Derrick Jr., James; Walls Jr., Rob; Mark E Haedicke@ECT
Cc: Rogers, Rex
Subject: Dabhol -- A Brief Legal Update

Gentlemen -

On Saturday, we received the consent required from the lenders to serve
Preliminary Termination Notices (PTNs) on MSEB under the PPA. The consent
allows us to serve PTNs for basically every bad act committed by our Indian
counterparts to date. We will need further lender approval to serve PTNs for
future bad acts.

On Saturday, we served PTNs on MSEB for (a) failure to pay certain amounts
under the PPA and (b) repudiation by MSEB of the PPA. There are a few more
PTNs that will be served on MSEB in early June -- the underlying defaults for
these PTNs required a 60 day notice period before service of a PTN and these
notices were served in early April.

Paul Kraske, General Counsel of Dabhol Power Company, told me that he
receives 4 Indian newspapers (including national newspapers) at his
apartment. On Sunday, our service of the PTNs was the lead story in all 4