Gentlemen -

On Saturday, we received the consent required from the lenders to serve Preliminary Termination Notices (PTNs) on MSEB under the PPA.  The consent allows us to serve PTNs for basically every bad act committed by our Indian counterparts to date.  We will need further lender approval to serve PTNs for future bad acts.

On Saturday, we served PTNs on MSEB for (a) failure to pay certain amounts under the PPA and (b) repudiation by MSEB of the PPA.  There are a few more PTNs that will be served on MSEB in early June -- the underlying defaults for these PTNs required a 60 day notice period before service of a PTN and these notices were served in early April.

Paul Kraske, General Counsel of Dabhol Power Company, told me that he receives 4 Indian newspapers (including national newspapers) at his apartment.  On Sunday, our service of the PTNs was the lead story in all 4 newspapers.

Bruce