Louise,

I think that John (see below) raises a valid point regarding our credit dismissal of the airline industry.  Enron does a very good job "wooing" a sector doing good times, but as soon as the commercial operations get tough we dump like a hot potato.  As such, when we will try to entertain the airline sector in the future to do risk management and hedging through Enron, substantial ill will this from prior disposal will have been created.  Do we care?  

I have got to think that there should exist sufficient origination opportunities for companies going into bankruptcy -- maybe for Lydecker's organization?

Just a thought, Mrha
 -----Original Message-----
From: 	Grass, John  
Sent:	Tuesday, September 18, 2001 9:02 AM
To:	Mrha, Jean
Subject:	FW: Credit Watch List--Week of 9/17/01

Jean,  

I am forwarding the credit watch list for your review.  I have one concern as a member of the origination team ("NO TRADES"-- Nine Energy Services, LLC and all Airline counterparties (including but not limited to the following):  Air Canada, Airtran Holdings, America West Airlines, America West Holdings Corp., American Airlines, Inc., AMR Corp., Chautauqua Airlines, Continental Airlines, Delta Air Lines, Jet Blue Airways, Midway Airlines, Northwest Airlines, Sabina Blanca SL, Southwest Airlines, United Air Lines, U.S. Airways and the VAL Group.)  I would hope that we are not just abandoning this segment of the industry.  I know Enron has been courting these counterparties for the last few years to hedge their energy needs.  I hope we are doing whatever is possible to work through the financial issues.  If Enron is going to keep market share in this industry we need to think about how we manage the risk and retain the customers.

 -----Original Message-----
From: 	Espinoza, Veronica  
Sent:	Monday, September 17, 2001 1:33 PM
To:	Brackett, Debbie R.; Bradford, William S.; Conner, Andrew R.; Fitzgerald, Genia; Hanse, Patrick; Murphy, Melissa Ann; Theriot, Kim S.; Yoder, Christian; Miller, Mike J.; Neal, Steve; Olinger, Kimberly S.; Otto, Charles H.; Parquet, David; Pereira, Susan W.; Perlman, Beth; Pollan, Sylvia S.; Price, Brent A.; Reck, Daniel; Reeves, Leslie; Ring, Andrea; Shackleton, Sara; Shankman, Jeffrey A.; Shively, Hunter S.; Sorenson, Jefferson D.; South, Steven P.; Allen, Phillip K.; Allen, Thresa A.; Arnold, John; Aucoin, Berney C. ; Baughman, Edward D.; Bowen, Bob; Brawner, Sandra F.; Brazaitis, Greg; Breslau, Craig; Coleman, Brad; Donohoe, Tom; Etringer, Michael; Foster, Chris H.; Glover, Sheila; Suh, Jungsuk; Taylor, Mark E (Legal); Tholt, Jane M.; Thomas, Jake; Lagrasta, Fred; Scheuer, Janelle; Gilbert, George N.; Fraser, Jennifer; Mellencamp, Lisa; Daniel, Shonnie; Gray, Barbara N.; Van Hooser, Steve; Cook, Mary; Nemec, Gerald; Ogden, Mary; St. Clair, Carol; Hlavaty, Nathan; Taylor, Craig; Sturm, Fletcher J.; Storey, Geoff; Holst, Keith; Keavey, Peter F.; Grigsby, Mike; Lewis, Andrew H.; Perlingiere, Debra; Smith, Maureen; Mulholland, Sarah; Barker, James R.; Fleming, Matthew B.; Dickson, Stacy E.; Ewing, Linda J.; Lilly, Kyle R.; Hanson, Kristen J.; Bosse, Kevin; Stuart III, William; Resendez, Isabel Y.; Eubanks Jr., David W.; Patel, Sheetal; Lavorato, John; O'Leary, Martin; Mahmassani, Souad; Singer, John; Knoblauh, Jay; Schockling, Gregory; McCairns, Dan; Bond, Ragan; Rangel, Ina; Gillette, Lisa; Bywaters, Candy; Green, Ron; Blay, Jennifer; Cook, Audrey; Seibel, Teresa; Benevides, Dennis; Ngo, Tracy; Harris, JoAnne; Tate, Paul; 'Imam, Zarin'; Bangle, Christina; Moran, Tom; 'Weithman, Tim'; Rawson, Lester; Hall, Bob M; Baxter, Bryce; Dahanayake, Bernard; Deming, Richard; Bailey, Derek; Anderson, Diane; Hunter, Larry Joe; Wallumrod, Ellen; Bowen, Bob; Lees, Lisa; Sever, Stephanie; Fisher, Joni; Eggleston, Meredith; Gorny, Vladimir; Vachuska, Cindy; Diamond, Russell; Miroballi, Angelo; Ratnala, Melissa K.; Williams, Jason R (Credit); Balfour-Flanagan, Cyndie; Richardson, Stacey; Bryan, Linda S.; Bussell l, Kathryn; Mims, Patrice L.; Jackson, Lee; Boxx, Pam B.; Hernandez, Elizabeth L.; Otto, Randy; Quezada, Daniel; Hull, Bryan; Penman, Gregg; Smith, Dana; Anderson, Clinton; Valderrama, Lisa; Tian, Yuan; Smith, Raiford; Plachy, Denver; Moon, Eric; McMichael Jr., Ed; Martin, Jabari; Little, Kelli; Huan, George; Horne, Jonathan; Hernandez, Alex; Garza, Maria; Garcia, Santiago; Fitzwater, Loftus; Espey, Darren; Dicarlo, Louis; Curlee, Steven; Breese, Mark; Boyt, Eric; Grass, John; Kelly, Katherine L.; Franklin, Cynthia; Khandker, Dayem; Thorne, Judy; Dicarlo, Louis; Jennings, Jennifer; Phillips, Rebecca; Grass, John; Ferries, Nelson; Ring, Andrea; Ortiz, Lucy; Martin, Thomas A.; Jones, Tana; Lucci, Paul T.; Nemec, Gerald; Smith, Tiffany; Stephens, Jeff; Quigley, Dutch; Hodge, Jeffrey T.; Goodell, Scott; Maggi, Mike; Griffith, John; May, Larry; Germany, Chris; Pimenov, Vladi; Townsend, Judy; Hendrickson, Scott; Ruscitti, Kevin; Williams, Jason (Trading); Lenhart, Matthew; Sanchez, Monique; Lambie, Chris; Reitmeyer, Jay; Gay, Randall L.; Farmer, Daren J.; Bass, Eric; Rohauer, Tanya
Subject:	Credit Watch List--Week of 9/17/01

Attached is a revised Credit Watch listing for the week of 9/17/01.   Please note that the following entities are placed on "NO TRADES"-- Nine Energy Services, LLC and all Airline counterparties (including but not limited to the following):  Air Canada, Airtran Holdings, America West Airlines, America West Holdings Corp., American Airlines, Inc., AMR Corp., Chautauqua Airlines, Continental Airlines, Delta Air Lines, Jet Blue Airways, Midway Airlines, Northwest Airlines, Sabina Blanca SL, Southwest Airlines, United Air Lines, U.S. Airways and the VAL Group.
If there are any personnel in your group that were not included in this distribution, please insure that they receive a copy of this report.
To add additional people to this distribution, or if this report has been sent to you in error, please contact Veronica Espinoza at x6-6002.
For other questions, please contact Jason R. Williams at x5-3923,  Veronica Espinoza at x6-6002 or Darren Vanek at x3-1436.