Attached is an email from Rogelio Lopez Velarde summarizing the current 
status of the Amparo proceeding related to the Vitro project.  The attached 
analysis clearly differs from the information provided by the Lopez Velarde 
firm at the end of December when they indicated the Amparo proceeding should 
be dismissed by the end of January.

As I believe you are aware, the dismissal with prejudice of the Amparo 
proceeding is a condition precedent to first disubursement under the Vitro 
Loan Agreement.  Although there are still many other conditions that must be 
satisfied before first disbursement can occur, we do not anticipate that six 
weeks will pass before such conditions have been satisfied. 

Therefore, I contacted the inhouse attorney for the lender, the 
Inter-American Development Bank, to discuss the status of the Amparo 
proceeding with him.  At my urging, he has agreed that the Inter-American 
Development Bank will waive the dismissal of the Amparo proceeding as a 
condition to first disbursement and will, instead, require that the 
proceeding be dismissed prior to second disbursement.  I have been informed 
that second disbursement will not occur until at least a month subsequent to 
first disbursement.  In such case, it is anticipated that the waiver of this 
condition to first disbursement will provide sufficient time for the docket 
to be cleared and for the Amparo proceeding to be dismissed prior to second 
disbursement.

The project company will be required to request in writing that the 
Inter-American Development Bank waive this condition precedent and such 
written request will be prepared after a review to determine whether other 
waivers may be requested but in sufficient time for the Inter-American 
Development Bank to process the request through their internal channels prior 
to the date of first disbursement.

Should you have any questions or comments, please do not hesitate to contact 
me. 
----- Forwarded by Peggy Banczak/HOU/ECT on 01/25/2001 04:03 PM -----

	Rogelio L?pez Velarde <rlopezv@lvha.com.mx>
	01/23/2001 11:19 AM
	Please respond to Rogelio L?pez Velarde
		 
		 To: "Peggy Banczak" <Peggy.Banczak@enron.com>
		 cc: 
		 Subject: Amparo Appeal



Dear Peggy:
?
Last Friday Jorge Canals and I met with the clerk of the First  Circuit Court 
of Appeals for Mexico City to discuss the appeal filed by the  petitioner, 
Consorcio Desarrollo Econ?mico Mexicano, S.A. de C.V.?This  clerk is in 
charge of?preparing the resolution for the judge that will be  presenting the 
case before the other two judges that compose the?court of  appeals.
?
The purpose of this first meeting was to deliver copies of all  of the other 
cases that have been dismissed, and to deliver a Memorandum of Law  that we 
prepared for him.
?
As you know, it is important that the court of appeals  becomes?aware about 
the fact that the same petitioner has filed 6  almost-identical Amparo 
complaints, and that all of them have been dismissed  with prejudice (there 
is only one pending an appeal). This is relevant because  in all of these 
cases the courts have dismissed the complaints based on the same  grounds: 
lack of standing, and therefore, such cases were never  published.
?
As we have monitored, the clerk confirmed to us that our case  is number 25 
in the docket. Unfortunately, and since the docket order cannot be  changed, 
the clerk believes that the case may be resolved in about 6  weeks.
?
As discussed before, we are planning to meet with the sitting  judge 
in-chambers next week, along with the General Counsel of the Energy  
Regulatory Commission, to see what we can do to expedite the resolution of 
the  case, and more importantly, to make sure that the complaint is 
conclusively  dismissed with prejudice, as required under the financing  
agreements.
?
Very truly yours,
?
Rogelio Lopez-Velarde? 
Hern?n Gonz?lez
?
Lopez Velarde, Heftye, Abogados
Guillermo Gonzalez Camarena  No. 1600, Piso 6
Col. Santa Fe, Centro de Ciudad
01210 Mexico,  D.F
Telephone: (52) 5081-14-24
Fax: (52) 5081-14-25
e-mail: rlopezv@lvha.com.mx? 
?
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