Here is an email: David: We need your and your firms' assistance regarding various forward contract issues that we continually seem to face as we develop new trading products and as we deal with our existing contracts in a distressed counterparty or bankruptcy situation. I thought that it would be helpful to summarize what we need done before we talk to you. Here are the areas that we need your advice on: 1. Obtaining Forward Contract Status a. All requirements deals b. bundled service contracts c. can only forward contract merchants terminate? If enter into single output contracts, does that affect our status as a forward contract merchant? (ewg, QF issues) d. review of Polaroid contract e. Review of EES retail contracts in general f. spot masters - are they forward contracts? 2. Termination Payments - is it considered a pre-petition or post-petition claim? 3. Utility Status - is any Enron entity a utility under the Code? 4. Swaps - can some of our "physical" contracts be recharacterized as swaps? 5. Collateral other than cash and LC's - can it be liquidated without relief from the stay? Ed Essandoh, an attorney with EES, will be faxing to you a copy of the Energy Management Agreement that EES has with Polaroid Corporation. We would like for you to review it and give us your thoughts on whether it would qualify as a forward contract. Ed's direct dial number is 713-345-8939. Can you contact my assistant, Sandy Haldeman, to schedule some time for Ed and I to talk to you about the above? Sandy's direct dial number is 713-345-3879. I will be out of pocket most of tomorrow morning but feel free to call Ed directly with respect to the Polaroid contract. We have assumed that your firm will not have a conflict on this but if this is a problem, please let us know.
What is a potential subject line for this email?
A: Forward Contract Advice
Here is an email: Hi, Trena! I am working again with Gary's desk now that Shari has moved on to power trading (legal). My first task has been to reconcile the outstanding Sutton Bridge transactions. I find three: (1) Currency Swap between ECT and Sutton Bridge Financing Ltd: booked 5/22/97 [ 12/31/97 through 6/30/22] (2) Currency Swap between ECT and Sutton Bridge Power booked 1/28/97 [ through 4/29/11] (3) Currency Swap between "ECT" and "Sutton Bridge" booked 3/29/00 [ through 3/31/03]. I have only seen the ticket and not the confirm. I understand that all swap transactions are to be terminated with the pending Sutton Bridge sale. Are you terminating these three (3) trades? Are there others? What is the third trade which was booked last week (I don't know anything about it)? Someone should be documenting the termination and payout. Please let me know ASAP as the lawyers are headed to San Antonio tomorrow. Thanks. Sara (X35620)
What is a potential subject line for this email?
A: Sutton Bridge swaps
Here is an email: John/Gia: You asked that we attempt to evaluate our activities. Working with TW, I've valued this one. The California Commission ruled that the "Hector Road" natural gas recent point in California ought to be made a primary receipt point. This would have had the effect of TW losing access right to 200 MMcf/d of capacity at SoCalGas' Needles receipt point. Best case scenario: Under SFV rates, loss to TW is commodity rates (wash) and the fuel margin. TW calculates the fuel margin to be $5.8MM/yr. Bad case: If shippers on TW try to make the case that TW is at fault for losing the primary access rights, then TW is at risk for the demand component of the contracts associated with the 200 MMcf/d. TW calculates the demand charges loss to be $16.5 MM/yr. Worse case: In addition to actual damages listed above, shippers face performance penalties and other contractual damages (from their customers) and they try to pass those costs on to TW. I discussions with TW, we concluded that the most likely case fell between "best" and "bad," somewhere in the $12-15MM/yr range. TW believes that without the assistance of CA Gov't Affairs in the case, the $12-15 MM/yr would have been lost. Be happy to discuss with you further. Best,
What is a potential subject line for this email?
A:
Valuation of GA Activities