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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Eric K. who wrote (150226)	11/29/2001 8:05:31 AM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Eric K., OT RE: Speaking as a professional money manager who has perhaps had some exposure to bankruptcies of enterprises that do actually have tangible assets (interests in/ownership of several pipelines, for example), do you have any insight to share on purchasing Enron's senior secured debt at the dimes on the dollar it's currently trading? Although I used to specialize in the distressed debt world, I don't play in the sandbox anymore, so my thoughts have the potential to be somewhat dated. I have followed Enron very closely for quite a while though. For Enron specifically, I wouldn't touch it on the long side. The off balance sheet transactions are cancerous. Just when you think you've discovered all the problems, another one pops out of nowhere. It is possible (although not definite) that an off balance sheet partnership could have debt with Enron as the obligor but senior to the Enron debt. In addition, everyone will end up suing everyone. It's gonna be ugly for a very long time. One other reason not to touch the debt is the people that you'd be competing with. There are a lot of funds out there that specialize in distressed debt that have a flood of bankruptcy specialists on staff. Unlike, say, Intel common stock, where the combined skillset of this board is probably superior to a major Wall St firm, with distressed debt, you'd be at a serious competitive disadvantage.