QUESTION: Michelle: As we discussed, would you please record the following tax entry in TIS: Dr. Cr. Other income $710,594,336 Interest expense $36,001,000 Non-current deferred debit $674,593,336 The above entry is temporary and will reverse non-current deferred tax liability. The principal intent of this entry is to reverse deferred tax on the book losses attributable to the unwinding of Project Raptor. Thank you, John.
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ANS: Raptor Unwind Losses

QUESTION: I would like to consider some counterparty-specific agreement to solve this problem. What do you think of a side agreement among both KN entities and Enron which specifies that a user ID and password have been issued to both of KN's legal entities jointly and severally and that transactions for certain products (e.g. all financial products) entered into under that user ID and password will be deemed executed by KN Trading (their financial trading entity) and all others will be deemed executed by KN Marketing (their physical entity)? Do you see any problems here? Issues re: joint & several liability under the ETA but not the Transactions? Let me know if you need further clarification of the problem. I haven't run this by Louise yet - she may raise system or commercial objections. Mark
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ANS: Assignment Issue

QUESTION: Spoke with Ben Glisan re our conversation on retail credit and concluded that we should meet with some banks that specialize in this area. Can you prepare a brief presentation that would serve as a discussion document for such a meeting. The concept is that a deal flows into a website?? that is basically a checklist and the transaction is sized and scoped. If it met deal criteria and portfolio requirements, it would flow directly to an outside shop that would fund, bill, track etc. Enron could possibly keep a small interest in economics and of course a skim. Lets review presentation, then discuss with Ben/Andy and Janet D. and proceed to banks. Ben is clearing idea with Delaney. We are shooting for a Friday (23) meeting. Thanks, Rick
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Retail Credit