Bryan,

On December 13, 2001, ACE Financial Services sent Jeff Kinneman, Enron North America Corp, a advisory that the Credit Derivative Transaction was under review and may be terminated.  

I forwarded a copy onto M. Heard, S. Shackleton and A. Aronowitz and faxed a copy to both you and Simon on December 14, 2001.

Please advise how Enron Credit is dealing with this transaction.

Thanks. Sheila

 -----Original Message-----
From: 	Glover, Sheila  
Sent:	Friday, December 14, 2001 9:12 AM
To:	Seyfried, Bryan
Cc:	Hickerson, Gary; Shackleton, Sara; Hemsley, Simon
Subject:	Enron Credit Inc. Deutsche Bank Credit Derivative Transaction
Importance:	High

Bryan,

Deuthsche Bank served a credit notice to ECT Investments Inc. for the "triplets" trade.  This trade is not ECT Investments Inc.'s.  All the Credit business was transferred to Enron North America on November 2000 and the Credit book was transferred to Enron Credit Inc. in February 2001.  This trade should not be in ECT Investments Inc.'s name and should have been transferred by Enron Credit.

I would expect Enron Credit Inc. to settle the financial liablility of this trade and not leave it as an obligation to ECT Investments, Inc.

My understanding is that the obligation is around $800,000.

Please advise.

Regards,
Sheila