What do you think I don't have the internet here? How you doing? Milly's meeting was pretty upbeat. I feel really good about everything today. I think there are about 4 different scenarios that could play out and all are OK. Call me if you want to chat.

Chris

 -----Original Message-----
From: 	Dorland, Dan  
Sent:	Monday, December 03, 2001 6:54 AM
To:	Devries, Paul; Borg, Jeff; Dorland, Chris; Ellis, Dave; Gaffney, Chris
Subject:	Enron files for Chapter 11 owing US$13B 

December 3, 2001
Enron files for Chapter 11 owing US$13B 
Canadian unit may survive: Filing allows energy giant to operate while restructuring
Peter Fitzpatrick 
Financial Post, with files from wire services 
Enron Corp. is seeking bankruptcy protection in one of the largest Chapter 11 filings in history, but its Canadian subsidiary is hoping to survive the energy giant's implosion.
Houston-based Enron took the widely-expected step yesterday in New York City. It was the latest humiliation for the leading U.S. energy trader, which boasted US$100-billion in revenue and US$1-billion in profit last year, but whose shares lost US$26-billion in market value in less than two months because of accounting concerns.
"While uncertainty during the past few weeks has severely impacted the market's confidence in Enron and its trading operations, we are taking the steps announced today to help preserve capital, stabilize our businesses, restore the confidence of our trading counterparties, and enhance our ability to pay our creditors," Ken Lay, Enron's chairman and chief executive, said in a statement. Enron listed about US$24.7-billion in assets and US$13.1-billion in debts in court papers. The largest Chapter 11 bankruptcy in history was Texaco Inc.'s US$35.9-billion filing in 1987.
The filing will allow Enron to continue operating while it negotiates a recovery plan with creditors, including the likely layoff of thousands of its 7,400 employees. It also blocks debt-collection efforts, lawsuits and other actions against the company.
Enron, which is looking to obtain debtor-in- possession financing to let it carry on, also said it is suing Dynegy Inc. for US$10-billion.
Dynegy triggered the collapse when it backed out of a US$23-billion takeover bid for Enron last week. Dynegy balked after learning Enron had overstated earnings by US$580-million since 1997 and had debt in outside partnerships that reduced shareholder equity by US$1.2-billion.
Enron's European arm went into bankruptcy last Thursday but it appears yesterday's filing did not cover its Canadian operation, Enron Canada Corp.
Calls yesterday to the Calgary-based subsidiary were not returned but in an affidavit filed in an Alberta court Friday, Robson Milnthorp, president and chief executive of the Canadian subsidiary, said he had been told by the parent company's lawyers that Enron Canada and its affiliates would be not be covered by any U.S. filing.
Enron Canada employs 143. It markets and trades electrical power and natural gas and has about $2.1-billion worth of contracts with hundreds of Canadian companies.
Mr. Milnthorp said in the affidavit that Enron Canada is a viable company on its own, but it needs time for advisors it has hired to negotiate with investors and potential buyers to recapitalize the firm.
Enron Canada asked for a stay under the Canada Business Corporations Act to prevent its partners in Canada from cancelling contracts, which they are able to do because the parent company can no longer guarantee them.
"Under the current climate of market hysteria, it is important to quiet things down and permit Enron Canada to demonstrate its financial strength and ability to perform independently of Enron Corp.," Mr. Milnthorp pleaded.
Although Justice D.G. Hart denied the stay, he told Enron to come back Wednesday once it had notified its Canadian partners of the application. Yesterday, however, a source familiar with the case said such a bid would be stillborn.
"If they try to do this application on Wednesday, there will be a ton of opposition. It will be almost impossible for them to get this order through," said the source, speaking before the Chapter 11 was announced.
The source said Enron Canada's only alternative may be to seek protection under the Companies' Creditors Arrangement Act, although that may be of no help since such a filing could also trigger contract cancellations.
Enron Corp.'s collapse leaves a global creditor list. Citigroup Inc., the largest U.S. financial services company, is owed US$3-billion from two loans and J.P. Morgan Chase's Chase Manhattan Bank is owed more than US$1.9-billion. In Canada, Canadian Imperial Bank of Commerce has a US$215-million exposure. Other Canadian banks downplayed or did not comment upon the situation last week.
Standard & Poor's said banks and other financial institutions face losses of US$6.3-billion through credit derivatives.