Do you guys still want these updates post reorg?

-----Original Message----- 
From: Lundstrom, Bruce 
Sent: Fri 6/22/2001 7:03 PM 
To: Derrick Jr., James; Walls Jr., Rob; Haedicke, Mark E. 
Cc: Rogers, Rex 
Subject: Dabhol -- A Brief Legal Update



Gentlemen --

A few updates:

On Thursday, the Bombay High Court set next Tuesday as the first substantive hearing to decide the issue of MERC's jurisdiction.  Rob and Gail Brownfeld plan to attend the hearing.

JBIC, the Japanese import/export bank, has probably been our most nervous lender as a result of the construction contract terminations.  We are spending considerable time trying to avert any acceleration on their part.  The Indian financial institutions have expressed "shock" that DPC would let the construction contracts terminate.  They knew well that the contracts were terminable on June 16 and that the banks were the only ones in the position to cure (i.e., pay the money owed to the contractors).

The Indian newspapers have carried a number of stories claiming that AES officials are contending that they could step into the project and offer a cheaper tariff.  We are trying to stop these stories and any reckless behavior by AES -- Ken Lay has been assisting in this effort.

Bruce