Message-ID: <19314655.1075840904654.JavaMail.evans@thyme>
Date: Fri, 22 Jun 2001 10:43:00 -0700 (PDT)
From: john.lavorato@enron.com
To: louise.kitchen@enron.com
Subject: RE: Investments Meeting Agenda
Mime-Version: 1.0
Content-Type: text/plain; charset=ANSI_X3.4-1968
Content-Transfer-Encoding: 7bit
X-From: John J Lavorato <John J Lavorato/ENRON@enronXgate@ENRON>
X-To: Louise Kitchen <Louise Kitchen/HOU/ECT@ECT>
X-cc: 
X-bcc: 
X-Folder: \ExMerge - Kitchen, Louise\'Americas\Restructuring
X-Origin: KITCHEN-L
X-FileName: louise kitchen 2-7-02.pst

Does ECR realize the negatives coming in MEGS.

 -----Original Message-----
From: 	Kitchen, Louise  
Sent:	Thursday, June 21, 2001 4:55 PM
To:	Garland, Kevin
Cc:	Lavorato, John; Colwell, Wes; Miller, Michael L.
Subject:	Re: Investments Meeting Agenda

I had a meeting this morning with Dick to go through the assets following a discussions with the Enron Americas team.  Enron Americas will be keeping the following assets:

Bridgeline - Mrha
LRC (Enron I Cavern - to Bridgeline) - Mrha
MEGS - this asset has been transferred to ECR within Enron Americas
Onondaga - to be retained by Ben Jacoby

This solves one of the issues below.

Louise




From:	Kevin Garland/ENRON@enronXgate on 06/21/2001 03:54 PM
To:	John J Lavorato/ENRON@enronXgate, Wes Colwell/ENRON@enronXgate, Michael L Miller/ENRON@enronXgate
cc:	Louise Kitchen/HOU/ECT@ECT 

Subject:	Investments Meeting Agenda

John, Wes and Michael,

The purpose of tomorrow's meeting is to discuss a few of the investments that we are planning on transferring to the new investment group.  The specific issues are as follows:

?	Encorp - the value of this investment was written up from $3 million to $9.85 million in Q4 2000 without justification.  It should be written back down at the end of this quarter.  Otherwise, we are going to have a bigger problem later.
?	Dais Analytic - same issue as above.  Investment was written up from $8 million to $20 million.  It should be written back down this quarter.
?	AMPS - This is a problem.  This company is going to continue to need capital (an additional $7 million immediately) well beyond what Enron should be funding.  I am not willing to provide this company with ongoing funding without significant further evaluation.  If it is that important to the strategic effort of ENA, then I recommend that ENA continue to manage the company and provide financing.
?	Bridgeline - After further evaluation, it is clear that this is not a merchant investment and should not be moved to my group.  I spoke with Jeff Donahue, and we both agree that if you want it sold, then his team should be the right one to do it.
?	Copel - This one is fuzzy, but Jeff Donahue and I have agreed that one of us should take responsibility for exiting this investment.  We still need to figure this one out.

KG

