No incremental credit reserve will be required, provided the transaction is 
assigned directly to EDF/London Electricity or to an affiliate with parental 
guaranty.

Rod


   
	
	
	From:  Sheila Glover                           07/13/2000 08:34 AM
	

To: Trena McFarland/LON/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Sara 
Shackleton/HOU/ECT@ECT
cc: Clara Carrington/HOU/ECT@ECT, Laurel Adams/HOU/ECT@ECT, Samantha 
Boyd/NA/Enron@Enron 
Subject: Sutton Bridge

Trena,
No P&L impact on unwinding deals, swap and hedge are Back to back
Do we have a contact to book the trades on the EDF side when appropriate?
Sara
Sara, Laurel will request copies of the original confirmations for the swap 
and hedge and forwad to you
Need to coordinate day of unwind on ENA and rebooking by EDF based upon Legal 
reassignment
Rod
Please advise whether a credit reserve was taken on this deal.
Thanks. Sheila

---------------------- Forwarded by Sheila Glover/HOU/ECT on 07/13/2000 08:19 
AM ---------------------------


Trena McFarland
07/13/2000 05:48 AM
To: Sheila Glover/HOU/ECT@ECT, Rod Nelson/HOU/ECT@ECT, Sara 
Shackleton/HOU/ECT@ECT
cc:  
Subject: 

Everybody

Further to the sell-down of Sutton Bridge it looks like the originators are 
planning, as part of that deal to assign infinity deal number 25556, a 
currency swap we have with Sutton Bridge to EDF/London Electricity.  The 
hedge for this deal is a back to back deal with Natwest, infinity deal number 
25555.

My questions are:
When this swap was originally entered into there would have been a credit 
reserve taken for it, which will have to be released.  How much is this and 
what is the process?  I am assuming this release of credit will not effect my 
traders P&L.  Can you please confirm this.

What else do we need to look at to complete this assignment?  What are the 
legal implications?


The originator is looking to do this fairly quickly and so a quick response 
would be greatly appreciated.


Thanks
Trena