alleghney update louise ,
instead of sending us a 1 - paragraph extension letter wed night , allegheny sent a one - sided 4 - pager yesterday afternoon .
the tone of the letter was inappropriate ( las vegas agreeing it was in default , but aesc being kind enough to give us a chance ) . also , the business points were overeaching and / or vague .
the team turned the draft last night to clarify the business points and tone . comments from legal ( commercial , litigation , finance ) , finance , credit , orig .
parquet spoke with dan gordon to share our major comments . gordon was non - commital but said that " sounds like we are pretty close " .
basic deal we have put in the letter :
- aesc believes they can terminate
- lvcii believes we have complied with tolling agreement
- parties will work for 5 business days to execute pledge agreement , security agreement , deed of trust , subordination and non - disturbance agreement
- aesc gets subordinated lien on ground lease
- ground lease has non - disturbance provisions ( lvci can not break lease for lvcii )
- aesc gets subordinated lien on lm 6000 and transformer contracts
- natwest loan agreement gets prepaid
- aesc acknowledges that lvcii is in compliance with security provisions of tolling agreement if we complete the above
- increase collateral threshold to $ 50 mm for both parties in master power agreement
- no additional margin calls made prior to december 31 , 2001
- $ 16 mm margin call made july 31 is withdrawn
- aesc keeps the $ 160 mm + l / c in place to cover existing exposure
- enron corp guarantess epmi for $ 60 mm
we are waiting to hear back from allegheny . plan is to have both teams with legal and commercial have conf call to review document today .
dash has been circulated to the group for comment and will be finalized today .
parquet is reviewing all of their previous comments on the security agreements so we are prepared to dig inot them over the next 5 business days if we get this letter executed .
finance is preparing necessary documentation to execute plan .
parquet is in his office and is obviously available to discuss - 415 - 782 - 7820 .
i am around and will participate when our next meeting is scheduled .
regards ,
chris
alleghney update
louise ,
instead of sending us a 1 - paragraph extension letter wed night , allegheny sent a one - sided 4 - pager yesterday afternoon .
the tone of the letter was inappropriate ( las vegas agreeing it was in default , but aesc being kind enough to give us a chance ) . also , the business points were overeaching and / or vague .
the team turned the draft last night to clarify the business points and tone . comments from legal ( commercial , litigation , finance ) , finance , credit , orig .
parquet spoke with dan gordon to share our major comments . gordon was non - commital but said that " sounds like we are pretty close " .
basic deal we have put in the letter :
- aesc believes they can terminate
- lvcii believes we have complied with tolling agreement
- parties will work for 5 business days to execute pledge agreement , security agreement , deed of trust , subordination and non - disturbance agreement
- aesc gets subordinated lien on ground lease
- ground lease has non - disturbance provisions ( lvci can not break lease for lvcii )
- aesc gets subordinated lien on lm 6000 and transformer contracts
- natwest loan agreement gets prepaid
- aesc acknowledges that lvcii is in compliance with security provisions of tolling agreement if we complete the above
- increase collateral threshold to $ 50 mm for both parties in master power agreement
- no additional margin calls made prior to december 31 , 2001
- $ 16 mm margin call made july 31 is withdrawn
- aesc keeps the $ 160 mm + l / c in place to cover existing exposure
- enron corp guarantess epmi for $ 60 mm
we are waiting to hear back from allegheny . plan is to have both teams with legal and commercial have conf call to review document today .
dash has been circulated to the group for comment and will be finalized today .
parquet is reviewing all of their previous comments on the security agreements so we are prepared to dig inot them over the next 5 business days if we get this letter executed .
finance is preparing necessary documentation to execute plan .
parquet is in his office and is obviously available to discuss - 415 - 782 - 7820 .
i am around and will participate when our next meeting is scheduled .
regards ,
chris