With the recent movement in long term interest rates, I thought I would update you on Enron's exposure to Greenfield. Enron has a long term interest rate swap (which is in the money to Enron) in place with Greenfield, which has recently appreciated considerably. Preserving the value of this swap has become our top priority.

This is a quick summary of Enron's exposure to Greenfield.

Greenfield (In order of seniority):
Senior Debt			110mn
Additional Sponsor Loans	55mn (Not yet funded)
ECT Interest Rate Swap		16mn
Shareholder Loans		9mn
Equity				55mn
Total				245mn

Enron Exposure (In order of seniority):
Additional Sponsor Loans 	11mn (Not yet funded, no obligation to do so)
ECT Interest Rate Swap		16mn
Shareholder Loans		2.4mn
Equity				11mn
Total				29.4mn (Excluding Additional Sponsor Loan)

Current discussions center around a sale of the vessel to a third party. El Paso have recently submitted a letter indicating a potential bid of 210-215 million. If this sale were to be completed, Enron would recover the swap breakage of 16mn and the Shareholder loan of 2.4mn entirely, and would recover approximaetly $4 million of equity, resulting in an overall write off of approximately $7mn. The timing of this transaction is not yet certain, but our intention would be to delay until Q102. A sale to a third party at this level would represent the best possible solution for Enron, and our efforts are concentrated in this area

In discussions held last week with Jim Hughes, Jim indicated that he thought it was appropriate that his group should bear the loss associated with this transaction, as it was originally entered into because of Dabhol. The Global LNG group and the Finance group will continue to push as hard as possible to resolve this matter in the best interests of Enron, and we remain in constant liaison with the DPC group.

Please feel free to contact us if you have any further questions.

Thanks,
Jonathan