Per our conversation and/or my voicemail, we are currently evaluating recapitalizing EOTT's subordinated units.  Specifically, we are considering converting Enron's subordinated units (7 million in total) to either cash or EOTT common units.  The exchange ratio would be between .25 - .35/unit.  For example, assuming a .30 (30%) exchange rate, the value to Enron would be as follows:

1.  7,000,000 * .3 = 2,100,000 units
2.  2,100,000 * $16.95 (today's closing price) = $35.59 million

Additionally, we would convert the APIs (currently valued at $9.3mm on the balance sheet) using the same exchange rate.  For example, assuming a .30 exchange rate, the value to Enron would be as follows:

1.  $9.3mm * .3 = $2.79mm

I would appreciate if you could determine the Net Income/Loss for the transaction (sale/conversion of the sub units and the APIs) under three scenarios (.25, .30 and .35 exchange rates).  Stan and Mitch will be meeting with Skilling on Wednesday early afternoon so I would appreciate if you could get back to me as soon as possible.

Thank you for your assistance.

Jessica
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