fw : liquidity proposal - - - - - original message - - - - -
from : " ackermann , hilary " @ enron
sent : wednesday , november 21 , 2001 10 : 46 am
to : ' lavorato @ enron . com '
subject : liquidity proposal
importance : high
hilary e . ackermann
goldman sachs
credit risk management & advisory
phone : 212 - 902 - 3724
fax : 212 - 428 - 1181
e - mail : hilary . ackermann @ gs . com
dear mr . lavorato :
following up on your and ken lay ' s conversation with gary cohn , i would like
to forward the following proposal , acting for each of goldman sachs capital
markets and j . aron .
> in order to provide enron north america with additional liquidity , j . aron
> and gscm have discussed entering into the following series of transactions
> on terms to be agreed between each of the relevant parties :
>
> 1 . enron corp . / j . aron - fx option sold by enron corp . to j . aron with a
> settlement date of dec 11 , 01 would be settled on nov 21 , 01 .
>
> 2 . enron na / gscm - interest rate swap portfolio - at enron na ' s option ,
> we would either ( a ) close out and portfolio on nov 21 , 01 , resulting in a
> payment from gscm to enron na or ( b ) bilaterally reduce applicable margin
> trigger from $ 10 mm to zero , which based on current mtm would result in
> $ 10 mm of additional margin being paid by gscm to enron na .
>
> weather derivative transaction - applicable margin trigger would be
> reduced from $ 50 mm to $ 5 mm , which based on current mtm would result in
> ~ $ 18 mm of margin being paid by gscm to enron na .
>
> 3 . enron na / j . aron - financial derivative portfolio - at enron na ' s
> option , we would either ( a ) close out and portfolio on nov 21 , 01 ,
> resulting in a payment from j . aron to enron na or ( b ) bilaterally reduce
> applicable margin trigger from $ 10 mm to zero , which based on current mtm
> would result in $ 10 mm of additional margin being paid by j . aron to enron
> na .
>
> physical natural gas receivable - in consideration of the foregoing , enron
> na would settle $ 10 . 5 mm physical natural gas receivable for value nov 21 ,
> 01 .
>
please call me at the number below at your soonest convenience to discuss
further . thank you .
hilary e . ackermann
goldman sachs
credit risk management & advisory
phone : 212 - 902 - 3724
fax : 212 - 428 - 1181
e - mail : hilary . ackermann @ gs . com
fw : liquidity proposal
- - - - - original message - - - - -
from : " ackermann , hilary " @ enron
sent : wednesday , november 21 , 2001 10 : 46 am
to : ' lavorato @ enron . com '
subject : liquidity proposal
importance : high
hilary e . ackermann
goldman sachs
credit risk management & advisory
phone : 212 - 902 - 3724
fax : 212 - 428 - 1181
e - mail : hilary . ackermann @ gs . com
dear mr . lavorato :
following up on your and ken lay ' s conversation with gary cohn , i would like
to forward the following proposal , acting for each of goldman sachs capital
markets and j . aron .
> in order to provide enron north america with additional liquidity , j . aron
> and gscm have discussed entering into the following series of transactions
> on terms to be agreed between each of the relevant parties :
>
> 1 . enron corp . / j . aron - fx option sold by enron corp . to j . aron with a
> settlement date of dec 11 , 01 would be settled on nov 21 , 01 .
>
> 2 . enron na / gscm - interest rate swap portfolio - at enron na ' s option ,
> we would either ( a ) close out and portfolio on nov 21 , 01 , resulting in a
> payment from gscm to enron na or ( b ) bilaterally reduce applicable margin
> trigger from $ 10 mm to zero , which based on current mtm would result in
> $ 10 mm of additional margin being paid by gscm to enron na .
>
> weather derivative transaction - applicable margin trigger would be
> reduced from $ 50 mm to $ 5 mm , which based on current mtm would result in
> ~ $ 18 mm of margin being paid by gscm to enron na .
>
> 3 . enron na / j . aron - financial derivative portfolio - at enron na ' s
> option , we would either ( a ) close out and portfolio on nov 21 , 01 ,
> resulting in a payment from j . aron to enron na or ( b ) bilaterally reduce
> applicable margin trigger from $ 10 mm to zero , which based on current mtm
> would result in $ 10 mm of additional margin being paid by j . aron to enron
> na .
>
> physical natural gas receivable - in consideration of the foregoing , enron
> na would settle $ 10 . 5 mm physical natural gas receivable for value nov 21 ,
> 01 .
>
please call me at the number below at your soonest convenience to discuss
further . thank you .
hilary e . ackermann
goldman sachs
credit risk management & advisory
phone : 212 - 902 - 3724
fax : 212 - 428 - 1181
e - mail : hilary . ackermann @ gs . com