Cris,

Following up on our conversation yesterday, I would be grateful if you would 
please confirm that from an accounting perspective we can use L/C's as 
collateral within our proposed structure. 

Having spoken with Legal & Credit, I understand that the use of cash as 
collateral creates difficulties under Canadian bankruptcy law regarding title 
to security & rights of set-off, therefore use of L/Cs would be the preferred 
route.

Sara, can we revert to using L/C as collateral within docs. 

Many thanks,

Soma