re : removal of unsecured limits and requesting security i will prepare a response and provide a draft for review . bill , i will talk to randy about posting and he can co - ordinate with you or tanya or jay .
- - - - - original message - - - - -
from : kitchen , louise
sent : thursday , november 01 , 2001 8 : 38 pm
to : bradford , william s . ; keohane , peter
subject : re : removal of unsecured limits and requesting security
i think so - respond rejecting his statements on ene and state we expect fair treatment with other bbb credits . meanwhile we ' ll send the margin - our guys should be able to minimize the position .
louise
- - - - - original message - - - - -
from : bradford , william s .
sent : thursday , november 01 , 2001 6 : 37 pm
to : keohane , peter
cc : kitchen , louise
subject : fw : removal of unsecured limits and requesting security
do we need to respond ?
- - - - - original message - - - - -
from : " kenny foo " @ enron
sent : thursday , november 01 , 2001 5 : 36 pm
to : otto , randy ; wbradfo @ ect . enron . com
cc : ron manitowich ; gary gault
subject : removal of unsecured limits and requesting security
hi randy , bill .
as per our discussion this afternoon randy ,
enron corp . ( enron ) has deteriorated further in the market place and the
recent downgrade of enron by s & p to bbb , although not completely a surprise ,
is still disconcerting . i applaud enron ' s effort in obtaining additional
bank lines to shore up liquidity but am disappointed that your pipeline
assets had to be pledge in support of same . additionally , moody ' s and s & p
have stated publicly that further downgrade is possible .
i would like to remind you that ngx does not provide any unsecured lines to
entities who are rated below bbb .
as you well know , given ngx ' s size and the fact that ngx needs to keep the
integrity of the exchange intact , we have no option but to inform you of the
following .
accordingly , please be advised that effective immediately enron canada corp
( ecc ) will no longer have any unsecured lines here at ngx ( reference
attached contracting party ' s agreement , schedule c , para 3 . 0 . a ) .
we respectfully request that ecc provide collateral ( preferably irrevocable
letter of credit , else registered interest in cash ) by the close of business
day monday , november 5 , 2001 ( reference contracting party ' s agreement ,
schedule c , para 8 . 1 ) .
as i said , if some other counterparty was in the position you are in right
now , you would expect us to do what it takes to keep the exchange
safe / intact / whole at all times .
please call if you have any questions .
kenny foo
credit and risk manager
ngx financial inc
140 - 4 avenue sw , suite 2330
calgary , alberta , t 2 p 3 n 3
ph : ( 403 ) 974 - 1737
fx : ( 403 ) 974 - 1719
attachment :
- cpa _ schedule c . pdf >
re : removal of unsecured limits and requesting security
i will prepare a response and provide a draft for review . bill , i will talk to randy about posting and he can co - ordinate with you or tanya or jay .
- - - - - original message - - - - -
from : kitchen , louise
sent : thursday , november 01 , 2001 8 : 38 pm
to : bradford , william s . ; keohane , peter
subject : re : removal of unsecured limits and requesting security
i think so - respond rejecting his statements on ene and state we expect fair treatment with other bbb credits . meanwhile we ' ll send the margin - our guys should be able to minimize the position .
louise
- - - - - original message - - - - -
from : bradford , william s .
sent : thursday , november 01 , 2001 6 : 37 pm
to : keohane , peter
cc : kitchen , louise
subject : fw : removal of unsecured limits and requesting security
do we need to respond ?
- - - - - original message - - - - -
from : " kenny foo " @ enron
sent : thursday , november 01 , 2001 5 : 36 pm
to : otto , randy ; wbradfo @ ect . enron . com
cc : ron manitowich ; gary gault
subject : removal of unsecured limits and requesting security
hi randy , bill .
as per our discussion this afternoon randy ,
enron corp . ( enron ) has deteriorated further in the market place and the
recent downgrade of enron by s & p to bbb , although not completely a surprise ,
is still disconcerting . i applaud enron ' s effort in obtaining additional
bank lines to shore up liquidity but am disappointed that your pipeline
assets had to be pledge in support of same . additionally , moody ' s and s & p
have stated publicly that further downgrade is possible .
i would like to remind you that ngx does not provide any unsecured lines to
entities who are rated below bbb .
as you well know , given ngx ' s size and the fact that ngx needs to keep the
integrity of the exchange intact , we have no option but to inform you of the
following .
accordingly , please be advised that effective immediately enron canada corp
( ecc ) will no longer have any unsecured lines here at ngx ( reference
attached contracting party ' s agreement , schedule c , para 3 . 0 . a ) .
we respectfully request that ecc provide collateral ( preferably irrevocable
letter of credit , else registered interest in cash ) by the close of business
day monday , november 5 , 2001 ( reference contracting party ' s agreement ,
schedule c , para 8 . 1 ) .
as i said , if some other counterparty was in the position you are in right
now , you would expect us to do what it takes to keep the exchange
safe / intact / whole at all times .
please call if you have any questions .
kenny foo
credit and risk manager
ngx financial inc
140 - 4 avenue sw , suite 2330
calgary , alberta , t 2 p 3 n 3
ph : ( 403 ) 974 - 1737
fx : ( 403 ) 974 - 1719
attachment :
- cpa _ schedule c . pdf >