Duke of URL, RE: Boy, I read through the documents. The only thing I found where interest payments disguised as "energy" payments. There was no hint. No statement, no disclosure what so ever that I could find. Even the "restatements" of Condor, after it had been discovered were not disclosed.
Can you cut and paste anything that you feel should have been a hint.
Please note, I am not saying it was not discernable. Anyone who was curious, and who had a need to know and with the financial training would have been put on notice because the manner and amount of the revenue far
exceeded the earnings scenario presented by the company, BUT there was NOTHING disclosed.
Perhaps, if you have the time you could find some language that you feel was disclosure.
From the 10-Q dated 31 March 2001, publicly disclosed on 15 May 2001 (Enron stock price close that day: $56.99):
[Please forgive the typos, I'm transcribing this and don't want to spend time correcting]
Note 2, 3rd paragraph: "Non-Cash Activity. In March 2001, Enron acquired the limited partner's interests in an unconsolidated equity affiliate, Joint Energy Development Investments Limited Partnership (JEDI), for $35 million. As a result of the acquisition, JEDI has been consolidated. JEDI's balance sheet as of the date of acquisition consisted of net assets of approximately $500 million, including an investment of 12 million shares of Enron common stock valued at approximately $785 million, merchant investments and other assets of approximately $670 million and third-party debt and debt owed to Enron of approximately $950 million. Enron repaid the third-party debt of approximately $620 million prior to March 31, 2001. Also see Note 8."
Note 8: "8. RELATED PARTY TRANSACTION
During the first quarter of 2001, Enron entered into transactions with limited partnerships (the Related Party) whose general partner is a senior officer of Enron. The limited partners of the Related Party are unrelated to Enron. All transactions with the Related Party are approved by Enron's senior risk officers as well as reviewed annually by the Board of Directors. Management believes that the terms of the transactions with the Related Party were reasonable compared to those which could have been negotiated with unrelated third parties.
Enron entered into transactions with the Related Party to hedge certain merchant investments and other assets. As part of these transactions, Enron has entered into agreements with entities formed in 2000 (the Entities), which included the obligation to deliver 12 million shares of Enron common stock in March 2005 (the Commitment) and entered into derivative instruments which eliminated the contingent nature of existing restricted forward contracts executed in 2000. The Commitment and the shares to be delivered under the derivative instruments are restricted through March 2005. In exchange, Enron received note receiveables from the Entities totalling approximately $827.6 million. In addition, Enron entered into share settled costless collar arrangements with the Entities on the 12 million shares of Enron common stock. Such transactions will be accoutned for as equity transactions when settled. Enron received a $6.5 million note receivable from teh Entities to terminated share-settled options on 7.1 million shares of Enron common stock. The transactions resulted in non-cash increases to non-current assets and equity.
In the first quarter of 2001, Enron recognized net revenues of approximately $236.1 million, primarily related to the change in market value of derivatives instruments entered into with the Entities in 2000 to hedge certain merchange investments and other assets. Revenues recognized on the derivative instruments offset market value changes of certain merchant investments and price risk management activities. In addition, Enron and the Entities terminated certain derivative instruments (originally entered into in 2000) with a combined notional value of approximately $658.5 million. Enron recieved a note receivable from the Entities for approximately $81.7 million related to such terminations. At March 31, 2001, cash in the Entities of $138 million was invested in Enron demand notes. Enron recognized $22 million and $3.5 million of interest income and interest expense, respectively, on notes receivable from and notes payable to the Entities.
In the first quarter of 2001, Enron received approximately $62 million from Whitewing Associates, LP, an unconsolidated equity affilitae, related to securitizations.
Sufficient?
There are enough smoking guns just in the stuff I transcribed to rival the Branch Davidian compound in Waco |
