re : please help to clarify :
1 . the guarantee issue is already in play with the canadian pipelines , power pools , office landlords , etc . and will be an impediment to closing and / or commencing business operations ;
2 . it is not that counterparties will be unlikely to transact with this new ubsw canadian entity without credit support . . . they will not ;
3 . although parental g ' ee of ubs ag as credit support will help , the structure of a non - creditworthy sub supported by a parental g ' ee ( with its own terms , conditions and limits ) is the old enron structure , and it may well not be well received in the industry .
peter .
- - - - - original message - - - - -
from : kitchen , louise
sent : monday , february 04 , 2002 7 : 58 am
to : ' pat . odonnell @ ubsw . com '
cc : haedicke , mark e . ; milnthorp , rob ; keohane , peter
subject : please help
canada appears to be an issue .
we need to make swift progress on this - unlike in the us the contracting entity with our counterparties will not be ubs ag , london division but ubs warburg energy ( canada ) ltd . with the lack of parental company guarantees forth coming from ubs , this is going to be an issue .
there are two main points , because of our current history our customers will not contract lightly with a subsidiary with no guarantee and secondly the credit group are asking for guarantees from our customers .
please let me know how we can progress on this .
louise
re : please help
to clarify :
1 . the guarantee issue is already in play with the canadian pipelines , power pools , office landlords , etc . and will be an impediment to closing and / or commencing business operations ;
2 . it is not that counterparties will be unlikely to transact with this new ubsw canadian entity without credit support . . . they will not ;
3 . although parental g ' ee of ubs ag as credit support will help , the structure of a non - creditworthy sub supported by a parental g ' ee ( with its own terms , conditions and limits ) is the old enron structure , and it may well not be well received in the industry .
peter .
- - - - - original message - - - - -
from : kitchen , louise
sent : monday , february 04 , 2002 7 : 58 am
to : ' pat . odonnell @ ubsw . com '
cc : haedicke , mark e . ; milnthorp , rob ; keohane , peter
subject : please help
canada appears to be an issue .
we need to make swift progress on this - unlike in the us the contracting entity with our counterparties will not be ubs ag , london division but ubs warburg energy ( canada ) ltd . with the lack of parental company guarantees forth coming from ubs , this is going to be an issue .
there are two main points , because of our current history our customers will not contract lightly with a subsidiary with no guarantee and secondly the credit group are asking for guarantees from our customers .
please let me know how we can progress on this .
louise