RE: Credit issues ,
 happy to talk to bill. do you want to go elizabeth??=20
 -----Original Message-----
From: =09St. Clair, Carol =20
Sent:=09Wednesday, December 19, 2001 4:34 PM
To:=09Mellencamp, Lisa; Sager, Elizabeth
Cc:=09Shackleton, Sara
Subject:=09RE: Credit issues

Lisa:
I have already I think "burned my bridges" with both Tanya and Debbie altho=
ugh I am not entirely sure about what I did to make them act the way they a=
re.  It may be better if you and/or Elizabeth meet with Bill and talk gener=
ally about how he wants credit issues to be handled and maybe he can shed s=
ome light on what is going on.=20

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-3393 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com

 -----Original Message-----
From: =09Mellencamp, Lisa =20
Sent:=09Wednesday, December  19, 2001 4:30 PM
To:=09St. Clair, Carol; Sager, Elizabeth
Cc:=09Shackleton, Sara
Subject:=09RE: Credit issues

i am thinking we should meet (i will bring the baseball bat in lyons's offi=
ce).
bradford, rohauer and brackett???

 -----Original Message-----
From: =09St. Clair, Carol =20
Sent:=09Wednesday, December 19, 2001 4:13 PM
To:=09Mellencamp, Lisa; Sager, Elizabeth
Cc:=09Shackleton, Sara
Subject:=09Credit issues

Lisa and Liz;
I am very concerned about the way that credit is handling and coordinating =
with us on margin issues.  For over a week we have been waiting for them to=
 compile and send to us information on LC's that are due to expire at the e=
nd of December.  We finally received a very cryptic spreadsheet this aftern=
oon which requires alot of follow up in order for us to determine what our =
rights are.  I get the sense that credit assumes that since we are in bankr=
uptcy we will never have the right to draw on LC's that we are holding when=
 in fact we know that this is not necessarily true.  For example, this afte=
rnoon I found out that we are holding an $8 million LC for trades done with=
 Enserco under an ISDA.  The drawing condition is a failure to pay.  Under =
the ISDA, they were required to renew this LC within 20 Business days of th=
e expiry date which is 12/31.  If they don't renew I'm hoping that we can d=
eclare an Event of Default, terminate, request payment of a termination pay=
ment and if they don't pay draw.  I'm not sure that by following all of the=
 cure periods in the ISDA we can be in a position to draw on the 31st.  Tha=
t's just one example.  Do you have any thoughts on this?

Carol St. Clair
EB 4539
713-853-3989 (phone)
713-646-3393 (fax)
281-382-1943 (cell phone)
8774545506 (pager)
281-890-8862 (home fax)
carol.st.clair@enron.com
carol.st.@enron.com