This is the content of an email: Here are my notes from today's call. As with Monday, I've focused on getting them out as quickly as possible rather than taking extra time to re-organize them by subject. Enron's business has been grouped into three buckets: Core, Non-core, and Under Review. Core: Wholesale energy business in North America and Europe, retail energy, pipelines Non-core: Broadband, water, and international assets (i.e. EGAS). Enron has approx. $8Bn in investments in these assets, and they have produced 'dismal' returns. Enron will be exiting these businesses and will attempt to wind them up in an orderly fashion. An aggressive divestiture program has been set in motion for these assets. Under Review: EGM, EIM. These businesses are being closely examined to determine whether they have a reasonable chance of long-term viability. Required resource levels are being carefully studied. Following review, Enron will move the different portions of these businesses to core or non-core as the analysis dictates. Approximately $800MM of asset sales are under contract and expected to close in the fourth quarter. These include a gas LDC in Brazil, EcoElectrica, and our Indian E&P assets. Enron is in active pursuit of an additional private equity infusion of $500MM-1Bn. Given the current environment, raising equity in the public markets would be 'inefficient', McMahon says. Short-term liquidity is provided by the $3Bn of credit drawn upon a few weeks ago, the $1Bn of new debt, and the $1.5Bn equity infusion from Dynegy. Longer-term, the proceeds from the sale of PGE will provide liquidity. Asset sales over the next year will be used to pay down debt. McMahon described the major off-balance-sheet vehicles: Marlin was set up to hold Azurix assets. It was initially capitalized with $950MM of 144a debt and $125MM of equity (raised from Enron and institutional investors). The debt is supported by the equity and by Azurix' assets. Enron is obligated to cover any deficit at the time the debt becomes due on 3/17/03 (the 'Enron topup' obligation). The 3/17/03 date is accelerated in the event that Enron is rated below-investment-grade by any one of the three major agencies. The primary asset of Marlin is Wessex Water. As long as Wessex is worth at least $2.6Bn, there will be no Enron topup required. If we take a 25% haircut to present book value, Enron will have to provide $650MM in consideration upon retirement of the debt. This $650MM would hit Enron cash, income, and equity balances. Osprey contains energy-related assets and 'other assets'. It was initially capitalized with $2.4Bn of 144a debt and $220MM in equity (ENE and institutionals). As with Marlin, the entity is an asset-backed structure with an Enron topup guarantee. The debt is supported by a) the assets; b) $1Bn of convertible preferred ENE (convertible into 50MM shares of ENE common); and c) additional ENE common as needed for topup. Assuming the same 25% hypothetical haircut to current book value, Enron would have to deliver approx. $600MM of topup funds--which would hit ENE cash, income, and equity. The debt must be retired by 9/17/02, with the same cut-to-junk early trigger provision as Marlin.

Subject: Highlights from ENE Analyst Conference Call 11/14

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This is the content of an email: Here is an update on the state of play in Washington regarding Dabhol as the Indian PM arrives this evening: As it became apparent last week that the discussions in Delhi about the MOU were not panning out, I met with OPIC President Watson and Exec VP Connelly to bring them up to speed on the status of discussions and map out the message to be given by the Administration to the PM on his visit this week. While OPIC certainly does not have final say re the message on Dabhol they are clearly the driver within the USG and they have been very aggressive in that regard. Out of our meeting Watson sent to State and the NSC a message with the following two points: 1. the Project sponsors, the $ lenders, and OPIC and EXIM are of one mind that the negotiating time frame on Dabhol is approaching its end. If India does not act immediately it will be too late. 2. The President and this Administration needs to express its strong disappointment at the failure of the GOI to make an effort to engage on the Buyout, which needs to be negotiated within a particular $ range, subject to a simultaneous negotiation with the $ lenders. The OPIC memo was sent to State and the NSC and is now embodied in talking points for President Bush in his Friday meeting with the PM. For the last week plus I have provided daily updates to OPIC, to Larson's office at State, to the South Asia regional group and to the NSC so they know of any new developments and where we are. Yesterday afternoon I met with OPIC on the lawsuit and how that might change the talking points. At this point, President Bush will raise Dabhol in his meeting with the PM Friday. The Indian Ambassador met with the NSC yesterday to discuss the agenda and was briefed on the MOU going in. It is being considered that Larry Lindsey will discuss Dabhol in greater detail, probably with Mishra. There was some concern about prior relationship to Enron but I understand from State the lawyers have taken care of the concern. Larson is in Doha but is current on the situation and can engage if necessary. It is unfortunate he is out of town. Amb. Blackwill had dinner last night with Watson and Connelly of OPIC and claims he is on top of the issue. Last, but certainly not least, we have a meeting with the PMO Secretary Ghash (?) at 4:30 Thursday at the Indian Embassy. I do not know if we have firmly decided yet who should attend. If Jim is out as I understand he is perhaps Rob Walls and I can attend. This meeting should give us an opportunity to respond in the Washington context to the proposal that I understand is in the offing in Singapore. We will then be in a position to feed that information back into the USG so that the President's meeting with the PM reflects the current state of discussions.
Subject: Dabhol Washington Update