Subject: re : erc financing
with regards to the existing deal , the setup costs and timeline was primarily the result of working out the kinks on legal / accounting structures to find a deal structure both sides could live with . i would hope costs would be lower on future additions . having said that , though , the underlying inventory items would have to be evaluated by the lenders for residual value and liquidity . to the degree the underlying asset would support less than book value upon a quick liquidation , the put / call price protection embeds more enron risk in the financing . in the current environment , i am less than confident i could sell the unsecured enron piece shortly . jim , can you stay point on this exercise for the ercs and other items . thanks .
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