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Gold/Mining/Energy : Enron - Natural Gas Industry
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To: jjs_ynot who wrote (1161)12/7/2001 2:19:20 PM
From: Robert Graham  Read Replies (1) of 1433
 
In my previous post, I included Enron's trading partners as part of the groups who will sue Enron. For Enron has defaulted on their contracts with them. This means to me that they will have to pursue payment through legal means. I do not know if they will be get a privileged position by default in the lineup of creditors. Do you know? Are those contracts that were traded with Enron tied to the company's assets in some way or stipulated in some fashion their specific status a a creditor to Enron?

In my very limited understanding of the trading of energy contracts, I believe what contracts these outfits had with Enron were exersizable with the result that Enron would provide them with energy as a specified cost. This is a different position from that of a creditor. This places their trading partner's more in the status of a customer. And by Enron not being able to make good on those contracts, that places their trading partners in an untenable position that can cost them potentially allot of money. The actual cost to the trading partners is what they can sue Enron for. Also there are the revenues that will evaoprate for those companies that sold energy to Enron, since Enron is not in the posiion to exersize their contracts.

As you can see, this is an area I do not understand well. So I would appreciate any comments. :-)

Bob Graham
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