nui deal documentation below please find the opinion of ena legal related to the idea of adding additional language to the transaction agreement / ( confirm ) to make it look more like a loan . if you have any questions related thereto , please contact stacy , jeff hodge & / or travis mccullough .
if there are any other outstanding issues , especially related to the cost of funds , please contact me immediately at x 37657 .
regards ,
ed
- - - - - - - - - - - - - - - - - - - - - - forwarded by ed mcmichael / hou / ect on 03 / 30 / 2001 12 : 30 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : stacy e dickson on 03 / 30 / 2001 12 : 19 pm
to : ed mcmichael / hou / ect @ ect , mark breese / hou / ect @ ect
cc : jeffrey t hodge / hou / ect @ ect , travis mccullough / hou / ect @ ect
subject : nui deal documentation
ed and mark ,
as we discussed , i spoke to jeff hodge and travis mccullough about the best way to document this deal . we all agreed that it is better to document the deal as a deferred payment on the sale of natural gas rather than as a loan . documenting the deal as a loan does not add any protection for enron and in fact , may be detrimental because of the various laws concerning loans and lenders . the protections and remedies afforded by the master track those that enron would have under a loan document . enron would be in no better position to collect from nui in the event of bankruptcy under a loan document than under the master firm purchase / sale agreement . additionally , i assume that nui , being a regulated utility , will not want to or be able to document this deal as a loan .
please let me know if you need additional information on this topic .
stacy
nui deal documentation
below please find the opinion of ena legal related to the idea of adding additional language to the transaction agreement / ( confirm ) to make it look more like a loan . if you have any questions related thereto , please contact stacy , jeff hodge & / or travis mccullough .
if there are any other outstanding issues , especially related to the cost of funds , please contact me immediately at x 37657 .
regards ,
ed
- - - - - - - - - - - - - - - - - - - - - - forwarded by ed mcmichael / hou / ect on 03 / 30 / 2001 12 : 30 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
from : stacy e dickson on 03 / 30 / 2001 12 : 19 pm
to : ed mcmichael / hou / ect @ ect , mark breese / hou / ect @ ect
cc : jeffrey t hodge / hou / ect @ ect , travis mccullough / hou / ect @ ect
subject : nui deal documentation
ed and mark ,
as we discussed , i spoke to jeff hodge and travis mccullough about the best way to document this deal . we all agreed that it is better to document the deal as a deferred payment on the sale of natural gas rather than as a loan . documenting the deal as a loan does not add any protection for enron and in fact , may be detrimental because of the various laws concerning loans and lenders . the protections and remedies afforded by the master track those that enron would have under a loan document . enron would be in no better position to collect from nui in the event of bankruptcy under a loan document than under the master firm purchase / sale agreement . additionally , i assume that nui , being a regulated utility , will not want to or be able to document this deal as a loan .
please let me know if you need additional information on this topic .
stacy