I have just spoken at length with Richard Smith regarding certain of the 
concerns raised in the e-mail below.? Richard's main concerns were as follows:

1.? As to filing of a claim for equity interests held, Richard indicates that 
this is not common practice and there may not be any provision for it in Thai 
bankruptcy law.? The claims to be filed are "applications for debt 
repayment", which are intended to set forth a fixed sum of which the creditor 
seeks payment.? Given the nature of equity investments, they do not really 
fit into the governing Thai bankruptcy law provisions.? Richard is following 
up with his Thai partner to further explore this issue, and I will be 
speaking with both of them later today.

2.? As to the contingent indemnification claims, Richard advises that the 
"application for debt repayment" must state a claim in a fixed amount.? 
Again, he is going to consult with his Thai partner on this issue, but his 
suggested approach is to file the claims as follows:? (1) with respect to the 
pending litigation, in the face amount of the claims asserted against the 
defendants (as an approximation of the potential maximum exposure); and (2) 
with respect to any potential litigation, in the total face amount of the 
bond issuances (also as an approximation of potential maximum exposure).? Two 
areas of greater uncertainty are any claims for legal fees and/or punitive 
damages, which obviously are not readily quantifiable.

I will keep you advised of our further discussions on these issues.? 

-----Original Message----- 
From: Eammongkolchai, Pichitphon 
[mailto:pichitphon.eammongkolchai@linklaters.com] 
Sent: Thursday, August 03, 2000 9:17 AM 
To: 'Lisa Mellencamp'; paronzon@milbank.com; showard@milbank.com; 
tkreller@milbank.com; 'SBhalla@milbank.com' 
Cc: Richard B Sanders; Linda Simmons; Deb Korkmas; Donna Lowry; 
Okanurak, Wilailuk; Dunn, Charles; Smith, Richard; Phungmaha, Ajaree 
Subject: NSM - Claim Filing 

We write further to our telephone discussion with Deb Korkmas this evening 
(our time) in relation to the above matter. 

As discussed during the course of our telephone discussion, there are a 
number of outstanding issues that, bearing in mind the 12 hour time 
difference between Bangkok and you and the deadline of the claim submission 
which is on Monday 7 August, we would require them to be settled by Friday. 

1.????? Claim amounts 
We note from the documentation so far received by us and your e-mail 
yesterday that the following entities will claim under the following 
agreements: 

1.1???? Enron North America Corp. wishes to claim for the principal amount 
outstanding and the interest outstanding for the Notes under the Security 
Purchase Agreement, Indenture and Guarantee.? We would appreciate it if this 
could be confirmed and also the definite amount of principal and interest 
that is to be claimed. 

1.2???? Enron North America Corp. wishes to claim for the shares (equity), 
as listed in the Shareholders Agreement, held by it in NSM.? However, having 
reviewed the documentation so far received by us we are unsure as to the 
legal grounds under which Enron North America Corp is entitled to claim this 
sum.? Could you please clarify the nature of this claim. 

1.3???? ECT Thailand Investment Inc. wishes to claim for the shares 
(equity), as listed in the Securities Purchase Agreement, held by it in NSM. 
However, as in 1.2 above, having reviewed the documentation received by us 
we are unsure as to the legal grounds under which ECT Thailand Investment 
Inc is entitled to claim this sum.? Could you please clarify the nature of 
this claim. 

1.4???? ECT Securities Limited Partnership wishes to claim for any 
contingent liability that they may be subject to as a result of the 
litigation undertaken by Farallon Capital, et al. and Legg Mason Income 
Trust, Inc., et al.? As discussed, the sums which are allowed to be claimed 
have to be fixed sums as of the date on which the court granted an order to 
reorganise NSM's business, i.e. 8 May 2000.? It would appear to us that, 
asides from the legal fee sums, an exact sum for the contingent liabilities 
cannot be ascertained at this time. I would, therefore, appreciate 
clarification of how this is to be determined, otherwise the claim amount 
may have to be the full potential liabilities as claimed in the two 
litigation cases. 

2.????? Documentation 
As discussed, we also require the following documentation which we 
understand will be faxed to us during the course of today. 

2.1???? Corporate documents of the 3 entities making claims 
2.2???? Evidence of the change in the entities name if different from the 
name in the relevant agreements 
2.2???? Debenture Certificate (either global or definitive) 
2.3???? Evidence of the payment purchase price 
2.4???? A copy of the Notice of the Event of Default or demand letters as 
sent by the Trustee (if any) 
2.5???? The "Definition and Rules of Usage" as defined in the Shareholders 
Agreement (in addition, we do not know whether your claims in relation to 
the Shareholders Agreement are related to certain documents as described 
therein, e.g. Management Agreement, Enron Purchase Agreement, if they are 
related, we would require copies of such agreements as well) 
2.6???? Tables setting out all amounts (i.e. principal, interest, expenses, 
etc.) being claimed by the 3 claiming entities 

As mentioned in our discussion, in order to complete the application on time 
we would really need to have everything in place by Friday, given the 
deadline of the claim submission is on Monday, 7 August.? We would, 
therefore, appreciate it if you could reply to all of the above outstanding 
issues by today (your time) so that if there are any further outstanding 
issues we can try and clarify these during the course of tomorrow (our time) 
and perhaps during the weekend.? You may either respond to this email or 
alternatively call my mobile phone (661) 619 1262 or Richard Smith's mobile 
phone (661) 611 1184. 

Best regards 

Pichitphon Eammongkolchai / Richard Smith 

____________________________________________________________ 

This message is confidential. It may also be privileged or 
otherwise protected by work product immunity or other legal 
rules. If you have received it by mistake please let us know 
by reply and then delete it from your system; you should not 
copy the message or disclose its contents to anyone. 
____________________________________________________________ 

This e-mail message may contain legally privileged and/or confidential 
information. If you are not the intended recipient(s), or the employee 
or agent responsible for delivery of this message to the intended 
recipient(s), you are hereby notified that any dissemination, 
distribution or copying of this e-mail message is strictly prohibited. 
If you have received this message in error, please immediately notify 
the sender and delete this e-mail message from your computer.