mhi 501 f ' s sale process - status fyi on the latest status on the mhis . if we don ' t see some progress tomorrow from fred , we are going to need to make a decision on whether to move forward with genassis . he had put a deadline of tomorrow for his offer which is approximately $ 3 million less than fred lange . however , he seems to be willing to move quicker . i will let you know if we hear anything from fred .
brett
- - - - - - - - - - - - - - - - - - - - - - forwarded by brett r wiggs / sa / enron on 08 / 27 / 2001 11 : 02 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
guillermo atenor
08 / 27 / 2001 05 : 32 pm
to : brett r wiggs / sa / enron @ enron
cc : diego hollweck / sa / enron @ enron
subject : mhi 501 f ' s sale process - status
brett ,
the following is a status summary on where we are regarding the sale of the first 2 mhi 501 f turbines :
our two most firm candidates right now are :
( i ) fred lange , from rescue 2000 , for a project in california of a company called intercom : his offer for the turbines , the already directed change orders and spare parts was us $ 90 , 230 , 000 . he agreed to make a us $ 200 , 000 payment for a three - week exclusivity upon execution of the relevant ppa , which is expected for today . the ppa execution was postponed for a week ( from last monday until today ) due to regulatory changes in california . therefore , there is no certainty about the ppa being executed today . we will talk to fred lange tomorrow to check where the process is .
( ii ) rick davis , from genassis , for a project in mexico , of a company called empresa industrial rio colorado : his offer for the turbines , the already directed change orders and spare parts was us $ 87 , 000 , 000 . he made his offer willing to make a us $ 2 million exclusivity payment , to be refundable " if enron does not obtain the assignment of the mhi contract " . we will call him tomorrow to inform him it is really up to them to qualify as a permitted assignee ( they have a copy of the contract with the permitted assignee conditions ) , and will check his position about making the us $ 2 million payment absolutely non - refundable .
as a back up , we are also talking to a couple of other brokers ( mike edwards - belyea power - and tom young - try ventures - ) , who are running behind the two above mentioned .
the following table shows ( i ) the book value of the different turbines components and ( ii ) the profit enron would make based on the two offers received so far :
base price 67 , 817 , 800
change orders 6 , 752 , 560
spare parts 4 , 900 , 000
approximate financing costs 2 , 800 , 000
total book value 82 , 270 , 360
fred lange rick davis
price offered 90 , 230 , 000 87 , 000 , 000
( includes base price , change orders and spare parts )
book value 82 , 270 , 360 82 , 270 , 360
enron profit 7 , 959 , 640 4 , 729 , 640
let me know any doubts or comments you may have .
thanks , guille .
mhi 501 f ' s sale process - status
fyi on the latest status on the mhis . if we don ' t see some progress tomorrow from fred , we are going to need to make a decision on whether to move forward with genassis . he had put a deadline of tomorrow for his offer which is approximately $ 3 million less than fred lange . however , he seems to be willing to move quicker . i will let you know if we hear anything from fred .
brett
- - - - - - - - - - - - - - - - - - - - - - forwarded by brett r wiggs / sa / enron on 08 / 27 / 2001 11 : 02 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
guillermo atenor
08 / 27 / 2001 05 : 32 pm
to : brett r wiggs / sa / enron @ enron
cc : diego hollweck / sa / enron @ enron
subject : mhi 501 f ' s sale process - status
brett ,
the following is a status summary on where we are regarding the sale of the first 2 mhi 501 f turbines :
our two most firm candidates right now are :
( i ) fred lange , from rescue 2000 , for a project in california of a company called intercom : his offer for the turbines , the already directed change orders and spare parts was us $ 90 , 230 , 000 . he agreed to make a us $ 200 , 000 payment for a three - week exclusivity upon execution of the relevant ppa , which is expected for today . the ppa execution was postponed for a week ( from last monday until today ) due to regulatory changes in california . therefore , there is no certainty about the ppa being executed today . we will talk to fred lange tomorrow to check where the process is .
( ii ) rick davis , from genassis , for a project in mexico , of a company called empresa industrial rio colorado : his offer for the turbines , the already directed change orders and spare parts was us $ 87 , 000 , 000 . he made his offer willing to make a us $ 2 million exclusivity payment , to be refundable " if enron does not obtain the assignment of the mhi contract " . we will call him tomorrow to inform him it is really up to them to qualify as a permitted assignee ( they have a copy of the contract with the permitted assignee conditions ) , and will check his position about making the us $ 2 million payment absolutely non - refundable .
as a back up , we are also talking to a couple of other brokers ( mike edwards - belyea power - and tom young - try ventures - ) , who are running behind the two above mentioned .
the following table shows ( i ) the book value of the different turbines components and ( ii ) the profit enron would make based on the two offers received so far :
base price 67 , 817 , 800
change orders 6 , 752 , 560
spare parts 4 , 900 , 000
approximate financing costs 2 , 800 , 000
total book value 82 , 270 , 360
fred lange rick davis
price offered 90 , 230 , 000 87 , 000 , 000
( includes base price , change orders and spare parts )
book value 82 , 270 , 360 82 , 270 , 360
enron profit 7 , 959 , 640 4 , 729 , 640
let me know any doubts or comments you may have .
thanks , guille .