John, are your responsibilities concerning Heartland Steel fulfulled if the contract is terminated?

 -----Original Message-----
From: 	Vela, Valerie  
Sent:	Thursday, September 27, 2001 3:31 PM
To:	Enerson, John; Mims, Patrice L.; Williams, Jason R (Credit)
Subject:	RE: Heartland Steel---CSN 

Yes, we're getting paid--our payment for August gas came in under CSN. Why we're still able to supply them given the contract is terminated is my question. Wes Dempsey made it sound like a contract was being considered/negotiated and that we were in fact supplying them in the interim. CSN is upset that we are issuing bills to Heartland Steel, however, I am constrained to doing just that since there is no contract or counterparty in existence. Obviously we will continue in this manner until there's a counterparty and contract established. The only information I received from my contact at Heartland Steel, Carrie Allen, who is now at CSN is a number and name for the attorneys handling their bankruptcy. They are Alvarez & Marsal @ 212-759-4433 and she gave me the name TJ Schultz. I hope this information helps somewhat. Please let me know how to handle this customer...

 -----Original Message-----
From: 	Enerson, John  
Sent:	Thursday, September 27, 2001 3:18 PM
To:	Mims, Patrice L.; Williams, Jason R (Credit)
Cc:	Vela, Valerie
Subject:	RE: Heartland Steel---CSN 

Whoever is doing gas settlements should know whether we are getting paid.  The contract was terminated as of the date of the sale.  

 -----Original Message-----
From: 	Mims, Patrice L.  
Sent:	Thursday, September 27, 2001 2:49 PM
To:	Williams, Jason R (Credit); Enerson, John; Mims, Patrice L.
Cc:	Vela, Valerie
Subject:	Heartland Steel---CSN 

Hey Guys,


I do not feel that the Heartland Steel/CSN issue is resolved.  We are now getting calls from a representative of CSN (Companhia Sidergica Nacional, LLC) saying that they have purchased Heartland Steel effective July, 2001.  If this is the case, then why are we continuing to invoice Heartland Steel?  Have we been paid by Heartland Steel?  Have we been continuing to receive the prepayments, and if so from whom?  Has CSN assumed the contractual obligations of Heartland Steel?

While the credit risk is not my responsibility, I am, however, extremely concerned that we really do not have a firm handle on the identity of our actual counterparty.

Will you please let me know how we should proceed.  I have a call into the CSN representative and it appears that they are not really happy with us, and would like to receive a visit from an Enron representative.

Let me know what the game plan is by noon, Friday, September 28, 2001.

Thank you for your cooperation.