Sally and Shona,
 
 Heartland Steel declared Bankruptcy today (1/24/01).  We have $10.7 M of 
Heartland in Enron Americas portfolio and $38.5 M in Enron Raptor I (which is 
100% hedged);  however, we have exceeded the maximum loss capacity in Raptor 
I.  Hope Vargas (in Wes Colwell's group) and I are working with Corporate 
Raptor to determine if Raptor II is going to continue to cover excess losses 
in Raptor I or if we are going to allocate these losses back to the Enron 
Americas business units.  As a result, we have not written the Heartland 
investments to zero on the 1/24/01 MPR.

 I will keep you updated on the status of this issue.  Please call me at 
x3-6983 if you have any questions.


David