Gentlemen -

A few updates:

We hope to file the petition on Monday in the Bombay High Court seeking a 
ruling that the MERC does not have jurisdiction over the PPA and the current 
disputes between MSEB and Dabhol Power Company.

The Dabhol lenders have planned 3 days of meetings in Singapore this coming 
week and we will attend these meetings.  Our lenders seem to be increasingly 
nervous.  They may try to cure the construction contract defaults (over $30 
million would be required in mid-June).  While we do not relish having the 
construction contracts fall away, we do not believe that funding is prudent 
at this point.  MSEB has torn up the PPA and stated that it will not 
cooperate with Phase II power station testing, the only real remaining 
function under the power plant construction contract.

A few insolvency/creditors' rights lawyers from Skadden will be here on 
Wednesday to discuss Dabhol creditor remedies and possible DPC defenses (both 
in India and the U.S.).  A lawyer from Susman Godfrey is scheduled to join us 
at that meeting.

Bruce