IN: Unless you object, we have decided to structure the auction site with the "auction procedures" set out on the bid page, immediately above the "submit" button. As soon as the bid is submitted, the system will check to see if the counterparty has already accepted the GTC's or has a master in place. Here is S&C's first draft of the procedures for an auction without a reserve price, with no commitment to sell (or buy) and no disclosure of bids to other parties. It is my impression that this is the way the EnBank auctions will be conducted. Is that correct? Any suggestions/comments? Mark

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OUT: Auction Procedures

IN: Gentlemen: Per our conversation this early afternoon, I have attached relevant documents for your legal's perusal. If deemed appropriate, executable documents would be delivered later today. Regards,

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OUT: Relevant Closing Documents

IN: David, I have a problem with the RAC comments made on page #2 of the DASH. Specifically, the two paragraphs basically add no value and just confuse the reader (ie) what is your opinion? Is this a good sale or can significant recovery (on a risk adjusted basis) occur if we convert the sub debt and infuse more equity? Are we not receiving enough value from the CFPC given the possible recovery of this sector? The DASH is deficient in its view of Basic's prospects given current energy prices. Jeff/Dick/Ray, what are your opinions? Independent of the desire to move on - what is the right call - I do not want to give value away in any divestiture or restructuring. Regards

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OUT: Basic

IN: The reason NBC will not take cash is the preference thing. I think it may be helpful if an attorney were to call Bill Bonnell (and he can get his attorney) on why they should accept cash as margin or a prepay of the Jan invoice and it will not be a preference issue. It may not work, but we should try. His number is 514-394-7564. This needs to be done asap. They are one hour ahead of us and they will likely draw on the LC first thing tomorrow morning as the cure period is up today. Please advise. Tanya

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OUT:
NBC