I spoke with Oscar Wyatt this afternoon on Crown and subsequently to Tom Bachtell, an attorney in Utah who is attempting to organize shareholders to replace existing management. Crown has an asphalt oil sand production facility in northeast Utah and an asphalt distribution company. Bachtell owns about 4-5% of the stock. Mr. Wyatt indicated he had a "small" holding. I indicated that we would consider any proposal that might result in salvaging some value from this investment. We hold convertible preferred and a small amount of common at an original cost of $5.5 million in 1997. Fully converted, our ownership would be approximately 25%. The Company has a net deficit of $21 million and a "going concern" paragraph in its audit opinion. We have written down our carrying value to nil. The Company in engaged in an arbitration proceeding against MCN Energy and MCNIC Pipeline. MCNIC has interests in the asphalt assets and is a lender to Crown. MCNIC attempted to foreclose on certain Crown assets and Crown in turn counter-sued for $100 million. The arbitration hearing will be held July 23 - August 10. If Crown obtained an award from the arbitration, some value could be restored to our investment. We will get further information from Bachtell on the details of his plans and recommend what position Enron should take in this matter.
Q: What is a potential subject line for this email?
answer: Crown Energy
Mary: Enclosed is the Counterparty form that we have come up with for Multi-Product Guarantys. Depending upon the products that need to be covered, each Guaranty will need to be modified to make sure that it describes the proper entities and products. I will send along the Enron form of this shortly but please pass this along to the appropriate people in the credit group. Jeff, Stacy and Harry, Are you going to change the Physical product form of Guaranty to look more like this? Power has changed their form and it may help for us to all be consistent especially when we are asked to amend an existing Guaranty to include more products. If you do decide to amend your form, please send the new form to credit. Thanks for everyone's input.
Q: What is a potential subject line for this email?
answer: Multi-Product Counterparty Guaranty
Per instructions from Brant Reves in Credit dated 5/15/98 (a copy of which has just been provided to me by Global Contracts), please inactivate the Master Agreement [ERMS] with the referenced counterparty. It appears Aurora Natural Gas Systems LLC is a dba for Aurora Natural Gas, LLC. We have an ISDA Master Agreement dated 1/20/00 in place with Aurora Natural Gas, LLC and all financial business should be transacted under such ISDA Master. Further, per Brant's instructions, all trades done with Aurora Natural Gas Systems, LLC should be moved to the correct legal entity, Aurora Natural Gas, LLC.
Q: What is a potential subject line for this email?
answer: Aurora Natural Gas Systems, LLC
AFAC and Marcelo: We are in the process of reviewing the Comparative Chart and attached memorandum and will soon provide a list of remaining issues which Enron North America and South America would like to have addressed. We are also attempting to identify specific types of transactions which may be required to hedge Enron risk in Brazil before 12/31/99. For planning purposes, the "group" would like to meet with you in Sao Paulo during the week of November 28. We are hoping that you may be able to accomodate us on November 30 (Tuesday), December 1 (Wednesday) or December 2 (Thursday). Please let us hear from you. Regards. Sara
Q: What is a potential subject line for this email?
answer:
Financial Trading in Brazil