re : longview dash request louise ,
cancellation charges have been the focus because the cash is provided by e - next banks ( turbopark ) . the cash paid to date is less than the actual contractual obligation to date . we do not need balance sheet cash to continue , but we need to come up with b / s cash if we terminate . hopefully the following clarifies :
cash payments to date :
ge 7 fa 13 , 328
st 909
hrsg 1480
interest 350
total : 16 , 067
next payments :
ge 7 fa 1 , 566 nov 21
st 2 , 849 dec 1
hrsg 2 , 960 dec 1
these are estimates - the timing of the actual payments depends upon when the vendor completes some of the work - payment based on milestones
cancellation charges :
10 / 31 : $ 23 mm
11 / 1 : $ 24 mm
11 / 30 : $ 28 . 3 mm
each day from 11 / 1 to 11 / 30 the cancellation charge increases by approx $ 150 k
dash is based on contractual exposure , not cash out the door , hence the request at this time . in addition to looking for opportunities to sell the equipment and the project , we are looking into the st and hrsg contracts to make sure the vendors are not in any sort of breach .
- - - - - original message - - - - -
from : kitchen , louise
sent : monday , october 29 , 2001 5 : 56 pm
to : schneider , chip
cc : calger , christopher f .
subject : re : longview dash request
sorry missing the message
when are the payments and how much are they if we keep moving forward as i am not prepared to write down a 23 mm loss .
payments and payment dates please .
thanks
louise
please say not soon too .
- - - - - original message - - - - -
from : schneider , chip
sent : monday , october 29 , 2001 7 : 26 pm
to : kitchen , louise
cc : calger , christopher f .
subject : longview dash request
louise :
a termination of equipment associated with the longview project on or before 10 / 31 / 01 will require enron to write - off approximately $ 23 million , not inclusive of approximately $ 3 million in development costs to date .
to extend orders for equipment to 11 / 30 / 01 will cost an additional $ 5 . 3 million in cancellation charges .
to extend orders for equipment to 12 / 31 / 01 will cost an additional $ 8 . 7 million ( inclusive of the $ 5 . 3 million above , therefore , net $ 3 . 4 million ) in cancellation charges .
termination at any time between now and year - end 2001 provides no material recovery potential for money spent .
regards ,
chip schneider
713 - 853 - 1789
ecn 2864
re : longview dash request
louise ,
cancellation charges have been the focus because the cash is provided by e - next banks ( turbopark ) . the cash paid to date is less than the actual contractual obligation to date . we do not need balance sheet cash to continue , but we need to come up with b / s cash if we terminate . hopefully the following clarifies :
cash payments to date :
ge 7 fa 13 , 328
st 909
hrsg 1480
interest 350
total : 16 , 067
next payments :
ge 7 fa 1 , 566 nov 21
st 2 , 849 dec 1
hrsg 2 , 960 dec 1
these are estimates - the timing of the actual payments depends upon when the vendor completes some of the work - payment based on milestones
cancellation charges :
10 / 31 : $ 23 mm
11 / 1 : $ 24 mm
11 / 30 : $ 28 . 3 mm
each day from 11 / 1 to 11 / 30 the cancellation charge increases by approx $ 150 k
dash is based on contractual exposure , not cash out the door , hence the request at this time . in addition to looking for opportunities to sell the equipment and the project , we are looking into the st and hrsg contracts to make sure the vendors are not in any sort of breach .
- - - - - original message - - - - -
from : kitchen , louise
sent : monday , october 29 , 2001 5 : 56 pm
to : schneider , chip
cc : calger , christopher f .
subject : re : longview dash request
sorry missing the message
when are the payments and how much are they if we keep moving forward as i am not prepared to write down a 23 mm loss .
payments and payment dates please .
thanks
louise
please say not soon too .
- - - - - original message - - - - -
from : schneider , chip
sent : monday , october 29 , 2001 7 : 26 pm
to : kitchen , louise
cc : calger , christopher f .
subject : longview dash request
louise :
a termination of equipment associated with the longview project on or before 10 / 31 / 01 will require enron to write - off approximately $ 23 million , not inclusive of approximately $ 3 million in development costs to date .
to extend orders for equipment to 11 / 30 / 01 will cost an additional $ 5 . 3 million in cancellation charges .
to extend orders for equipment to 12 / 31 / 01 will cost an additional $ 8 . 7 million ( inclusive of the $ 5 . 3 million above , therefore , net $ 3 . 4 million ) in cancellation charges .
termination at any time between now and year - end 2001 provides no material recovery potential for money spent .
regards ,
chip schneider
713 - 853 - 1789
ecn 2864