re : erc financing before we spend any money , i ' ll pull together the market info to determine if there is enough residual value / liquidity data to support a story that the loan would be secured .
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from : deffner , joseph
sent : thursday , october 25 , 2001 3 : 22 pm
to : calger , christopher f . ; kitchen , louise
cc : lewis , jim
subject : re : erc financing
with regards to the existing deal , the setup costs and timeline was primarily the result of working out the kinks on legal / accounting structures to find a deal structure both sides could live with . i would hope costs would be lower on future additions . having said that , though , the underlying inventory items would have to be evaluated by the lenders for residual value and liquidity . to the degree the underlying asset would support less than book value upon a quick liquidation , the put / call price protection embeds more enron risk in the financing . in the current environment , i am less than confident i could sell the unsecured enron piece shortly . jim , can you stay point on this exercise for the ercs and other items . thanks .
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sent from my blackberry wireless handheld ( www . blackberry . net )
re : erc financing
before we spend any money , i ' ll pull together the market info to determine if there is enough residual value / liquidity data to support a story that the loan would be secured .
- - - - - original message - - - - -
from : deffner , joseph
sent : thursday , october 25 , 2001 3 : 22 pm
to : calger , christopher f . ; kitchen , louise
cc : lewis , jim
subject : re : erc financing
with regards to the existing deal , the setup costs and timeline was primarily the result of working out the kinks on legal / accounting structures to find a deal structure both sides could live with . i would hope costs would be lower on future additions . having said that , though , the underlying inventory items would have to be evaluated by the lenders for residual value and liquidity . to the degree the underlying asset would support less than book value upon a quick liquidation , the put / call price protection embeds more enron risk in the financing . in the current environment , i am less than confident i could sell the unsecured enron piece shortly . jim , can you stay point on this exercise for the ercs and other items . thanks .
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sent from my blackberry wireless handheld ( www . blackberry . net )