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Hi Tim

Leslie Reeves recently spoke to me about an outstanding receivable we still 
have relating to PCA.  

PCA went into bankruptcy in 1998.  At the time of PCA's bankruptcy, PCA owed  
a $5.3 million receivable to EPMI.   On EPMI's books, this uncollected 
receivable amount was offset by an out-of-the money forward position EPMI had 
with PCA which we were able to take to zero when PCA defaulted (contract 
provided for one  way payments upon the occurrence of an event of default) 
and some funds from credit.  After netting all these amounts,  there is still 
a $600,000 receivable showing up as owed from PCA to EPMI.  Based on the 
current bankruptcy proceedings, it is not likely that EPMI will receive any 
additional funds from PCA (we have taken a very low key approach in the 
bankruptcy due to the lack of PCA funds, the extensive amounts owed by PCA to 
other creditors, the assertions being made by PCA against some of the other 
creditors, and the legal effect of the one-way payment termination payment 
that provided us a significant offset to the receivable).

Accordingly, unless I hear otherwise from you, I will talk to Leslie and tell 
her to go ahead and clean up the $600,000  PCA receivable now, and in the 
unlikely event PCA makes payments to any creditors,  we would then give such 
amounts received from PCA back to you. 

Call me if you have any questions.

Thanks
Elizabeth 
713 853 6349