they will need to file a proof of claim for this amount. the money was not segragated so they have a claim just like any other unsecured creditor. we should call them and advise that they will need to file a claim for the funds.

-----Original Message----- 
From: Shackleton, Sara 
Sent: Thu 12/27/2001 4:32 PM 
To: Mellencamp, Lisa 
Cc: 
Subject: RE: Requests for return of cash collateral



yes, earlier this year (posted in the form of "up front collateral"). 

 -----Original Message----- 
From:   Mellencamp, Lisa  
Sent:   Thursday, December 27, 2001 1:13 PM 
To:     Shackleton, Sara 
Subject:        RE: Requests for return of cash collateral 

was the cash margin given to us pre-petition? 

 -----Original Message----- 
From:   Shackleton, Sara  
Sent:   Thursday, December 27, 2001 11:03 AM 
To:     Mellencamp, Lisa 
Cc:     St. Clair, Carol 
Subject:        Requests for return of cash collateral 

Lisa: 

ENA has received a second written request from a financial counterparty (Union Spring Fund Ltd.) for the return of $150,000 cash collateral plus interest.  The cash was posted as initial margin on trade date of the swaps.  We have confirmed that all trades were terminated as of mid-December, 2001.  The counterparty has not sent a "termination letter" as there was nothing to terminate, but has sent a letter requesting return of the collateral.

Although we may not want to return the cash, aren't we obligated to do so? 

Sara Shackleton 
Enron Wholesale Services 
1400 Smith Street, EB3801a 
Houston, TX  77002 
Ph:  (713) 853-5620 
Fax: (713) 646-3490