It appears that this deal, once complete will be approximately $80k 
positive.  The value of litigating is primarily in maintaining discipline in 
the industry regarding the enforcability of financial contracts (as opposed 
to physical contracts were the current norm is for a buyer to walk from his 
contracts whenever he perceives the availability of a better alternative).

Andrew/Britt - can you please provide an estimate of what sending this 
message will ultimately cost in legal fees?

Thanks,
Alan






   
	
	
	From:  Douglas S Friedman                           02/23/2001 04:16 AM
	

To: Alan Engberg
cc:  
Subject: Salerno

How does this deal look now in light of the surprising recent price increases 
in PE?  Are the projected cash flows worth pursuing at this time?

Doug
---------------------- Forwarded by Douglas S Friedman/HOU/ECT on 02/23/2001 
04:07 AM ---------------------------
From: Andrew Edison@ENRON on 02/23/2001 03:08 AM
To: Alan Engberg/HOU/ECT@ECT, Douglas S Friedman/HOU/ECT@ECT, Sara 
Shackleton/HOU/ECT@ECT
cc: Britt Davis/Enron@EnronXGate 
Subject: Salerno

I just wanted to provide you with a quick update on this matter.  We sent a 
demand letter to Salerno about a month ago, but have heard nothing. I have 
made several calls to Salerno's Bob Lampo, but he will not return my calls.  
Therefore, we are preparing a lawsuit, which we will file here in Houston.  I 
have asked Britt Davis in the Enron Litigation Unit to prepare the lawsuit.  
Alan, I have told Britt to give you a call if he has any questions.

Truth and justice will prevail.

Andy