Enron?

John Mage jmage at panix.com
Tue Dec 4 17:08:13 PST 2001


More strange stuff every day as Enron's creditors 'fess up (notice the crisis for the Japanese money market funds due to those Enron Yen/Euro bonds?). The Chapter 11 filing on the web http://www.enron.com/corp/pressroom/chapter11/pdfs/EnronMetalsCommodity20.pdf has *unsecured* numbers for Citicorp ($3 billion) Bank of NY ($2.5b) and Morgan/Chase ($2b) WAY over what they had admitted to, and way over what even the FT as of today was still estimating. Anyone with a clue? dd? john mage

http://www.chron.com/cs/CDA/story.hts/special/enron/1157020 "Enron lays off 4,000 Many ex-employees feel betrayed and angry" with photo of sign reading "Jobless Enron USMC veteran will work for food...God Bless" - no wonder they filed for Chapter 11 in Manhattan.

and for "reflexivity alert"... http://houston.bcentral.com/houston/stories/2000/02/28/story5.html Houston Business Journal
>From the February 25, 2000 print edition

Enron opens online credit department

Monica Perin

Enron Energy has launched EnronCredit.com, which the company is billing as the first online credit department.

The new venture grew out of Enron's experience with trying to monitor internal risks while trading natural gas and electricity.

"The process we developed is what we are offering to other companies," says spokesman Mark Palmer.

Initially, the credit service will be geared toward energy and technology companies.

EnronCredit.com's credit risk information is based on a company's likelihood to go bankrupt, rather than on a company's chance of defaulting on bond payments.

Services such as Moody's and Dun & Bradstreet have traditionally linked ratings to bond defaults, but the ratings may go for months, or even years, without being updated.[Ha! Enron had "investment grade" paper into November! - jm]

EnronCredit.com's ratings will be based on current commercial contracts. If a company is involved in transactions that might weaken it to the point of bankruptcy, the information will be reflected in the prices posted by EnronCredit.com.

The first of these "bankruptcy swaps" will be offered on EnronCredit.com beginning March 8.

"We hope to be able eventually to post this product for thousands of companies," says Palmer.



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