I i~ -g a ENRON NORTH AMERICA PORTFOLIO WATCH LIST UPDATE AS OF 813112000 Distribution: Buy, Ri& Delalney, Dave Donahue, Jeff Frevert, Mark Haedicks, Mark (via Cc:Mail) Lydecker, Richard (via cc:Mail) Skilling, Jeff Sutton, Joe (via cc:Mail) PLEASE NOTiFY RICK CARSON AT 1(3-3905 wrm QUESTIONS OR COMMENTS CONFIDENTIAL ECTeOI232I 085 EXHO43-0021 3 + Qi. NI GOVERNMENT EXHIBIT 24591 Cnm No H 04-0025 I A 1~I't' & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 813112000 VALUES INDICATED AIU~ FOR ENRON NORTH AMERICA Cost & Cany Values as of 7-31-2000. Market Values from Merchant Portfolio Repoit Dated 8-24-2000. TABLE OF CONTENTS WATCH ASSETS.........................................................................3-6 Boone Terre Exploration Lewis Energy (To Pe~fonnlng) Sacramento Basin Exploration ~ City Forest Corporation Q~-Lir¶der Energy LLC ~i Venoco, Inc. ~Cypress Exploration p,.~ LEI Electnc Specialty Corp gi WE Oil Company DPR Holding Company LLC V-Mariner Energy I Ecogas (l~o Troubled) jZl Connie Falls p Heartland Steel (To Troubled) p~ Juniper Exploration TROUBLED ASSETS.......................................................................6-9 ~ il'. Beau Canada (ii Hughes Rawis LLC Kafus Industries/ CanlThre p.3 Brigham Exploration Co. ~ Ice Dulling ~ Queen Send Resources. Inc. ~ ~- C-Gas tZl Industrial Holdings "THE" Basic Energy (Sierra Well Seivice) Crown Energy (F. Loss) ~ Inland Resources Trmiscoastal Marine Services EnSeiCo Offshore LOSS ASSETS...........................................................................9- 10 Belc.o Oil &Gas Lyco Energy Nakomthai Strip Mill RESTRUCTURED ASSET ACTIVITY In Progress I Partially Completed * Restructurlogs Completed Brigham Exploration Canizo Oil & Gas C-Gas Costilla Energy Crown Energy Eugene Offshore Holdings. LLC Enserco Offshore Forcenergy Gasco Distribution Ice Drilling Hogan Exploration Inland Resources Hughes Rawla TiC Repap Resources Industrial Haldi ThPoint, Inc. Kafus Industries / Canlibre Qualitech Steel CONFIDENTIAL 2 ECTeOI 2321086 EXHO43-0021 4 III$KASSESSMENI&(~ONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 8/31/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA I Lvco Encr~v NSNt- tflattana I Queen Sand Resources I I Basic Ener Sierra Well Service Transcoastal Marine * WATCH Assets displaying early warning signs of potential weakness that deserve close attention. Bonne Terre EaDloratian (Limited Liability Ccxnpany) JEDI II & Balance Sheet A new deal approval sheet has been finalized regarding an additional $10 MM investment to be used to maintain Leasehold position, purchase and evaluate seismic data and conduct an exploratory drilling program The original program inventory had been drilled up or abandoned. The LLC between EA'A and Sims Gary has been unsuccessful, but a potentially valuable undeveloped acreage block has been accumulated and further drilling is required to wslock the possible value. The LW is being dissolved and ENA will be working with new partners Manti and Tn-C to manage the assets and the drilling program Two wells will be drilled "heads zq.~" (according to owoership interest) with the remainder to be done on a promote baszs~ Negotiations are on-going with RIMCO to sell the Black B udomefleld City Forest Cori,orimt ion (Senior / Sub Loans, with IPC a) Balance Sheet and BI"TA CLO Trust #1 * Liquidity issues wall remain tight through Nov-F'~ but the technical issues with the #4 machine have now been mostly resolved. The machine recently averaged 75 tons/day of light paper over a recent 2- week period with heavyweight paper averaging 100 tons/day over a similar period. The madame needs to average 85 tons/day per month for break even. The number of days sales outstanding has improved to 28 days. The semi-annual interest payment that is due on Sept-P' is expected to be made on tiniL Current estimates ro~ect average cash/low ofS250K/monthl,~for the Q-4-2000 period -r' - (Transfer to ENA CLO #1) CvDress Eanloration (Working Interest) Balance Sheet * The possible sale of the Thornweli property in Jefferson Davis Parish. Louisiana. to ltdanti and The Meridian Resource Corp. has been dropped Drilling activity at Thorwell currently involves the Manti. Lyons #20-1 welL The well could not reach proposed total depth ofll,900 feeL but did log to 11,608 feeL The Thoniwell property may be monetized through a volume ftc production payment with Enron Resource Corp.. in the amount of $17- $20 MAt The Bill Rogers group continues to work the other acreage and identify new prospects. There is an emphasis to move to a dnllable stage fairly quicA~y, thereby mitigating delay rentals on the leases that are estimated to be in the $2 -$3 MM range ~e~r 2000. DPR Holdiuu Company. LW (Senior Debt & Pnvate Equity) JEDI II & Balance Shect * An Agreement has been reached and finalized with Chris Cline to repurchase the Panther mine loan and the associated income participation certaylcales. The loan to Panther had a corporate parantee from DPR Holdings and a personal guarantee from Chris dine. Due to ongoing operational losses at the Panther mine, an inter-company loan agreement was required between DPR Holdings and Panther that allowed for the timely payment of interest That issue was also negatively impacti*2g equity distributions to ENA /JED.l ii as 19% ovmers of DPR Holdings. Another upcoming event that CONFIDENTIAL 3 ECTeQI 2321087 EXHO43-0021 5 4 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 8/31/2000 VAlUES INDICATED ARE FOR ENRON NORTH AMERJCA would have hurt cosh flow was the quarterly principal payments that would have been due on the -Pher-loan-beginningS#'~---The-valn-for1hrncomenicipatton-certificates-(-"tPC '4 was informally agreed to at £2.9 MM. ENA will retain the right to market Panther's coat with increases in the annual minimum tonnage. The JEDI 11/ ENA net gain on the transaction is expected to ~proximate $4001C (Transfer to ENA CLO #1) S23 054MM WATCH - (Continued) JUUiDCr Ex~Ioradon (Limited Partnership) JEDI II & Balance Sheet a Approval has been granted for parti cipation in prospects on Eugene Island 60, Eugene island 80 and West Camerson 3)0. which are Juniper prospects. Approvals are also being sought; an four other Eugene Island locations, which are currently Samedan prospects. All of these prospects, (and possibly High island A-232 and V263 - other Samedan prospects) are being considered as part of a large prospect swap with Samedan~ Juniper is negotiating the transaction while EM'! conducts technical due diligence on the Samedan prospects. Juniper was high bidder on High Island Block 72 New Orleans. The mately $462 K Lewis Enere, GrouD ("LEG"~ (Limited Partnership & Term Loans) lED! I (Gross #s) * MOVING TO "PERFORMING" On July-27'~' LEG paid 513.3MM (including a 5500K deposit that was made on May-I 9"') to repurchase the EJIA /JEDI I partnership interest Based on the ENA CLO loan being current and considered perfllrmzn& recommendation is made to mave the asset to the ~onnrn~'cate~wy. (Transfer to ENA CLO #1) S 2.216MM Linder Energy LLC (667% Membership Interest) .1EDI II & Balance Sheet * An internal meeting was recently held involving the Enron CommerciaL LegaL RAC and Engineering groups. Discussion centered on go-forward strategy for the asset and what if anything can be done to incentivize Linder, as a 25% working interest owner, to bring behind pipe reserves into the producing categoi'y. The PV)2 value of the reserves exceeds the amount currently outstanding~ but .50% + of the reserve value is behind pipe and will require cap-er dollars to bring it on line. The principals of Linder, are capital constrained and also lack incentive to convert the behind pipe reserves to the producing categoi~ as distributions are currently at 99% to AD! LII ENA. The ownership percentage is adjusted as necessa,~ to ensure a 12/o rate of return (floor distribution is 66~ 7%). The capital that Linder does have can be deployed elsewhere at higher rates of retuni~ The Legal group is reviewing the Agreement but ii is currently thought that given the structure, there is little that can be done to corn el Linder to act A meeti~~g is scheduled with Linder on LSI Electric SDecIalty Coni (Sr. Term Loan. Prcfcrred Stock and Warrants) JEDI II & Balance Sheet * The Company is negotiating a 52 MM deal with New Orleans based Chiles Offshore Drilling in Singapore that wilt likely close during Q-3. The revenue mix recently has been favorably skewed toward the higher margin (20-25%) MOR (maintenance, operations and repair) business. Revenue CONFIDENTIAL 4 ECTeOI 2321088 EXHO43-0021 6 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 8/31/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA for year 2000 is targeted in the 325MM range with $15 MM from the higher margin MOR business --- ~-~---ond--$IO~f-from-Project-basines.r1Stkarncenrly1xwrrerhinknrg*eiriiv.sinesnnrrdetto7ro5sibiy include a total cable inventoPy management system that would better allow them to withstand the inherent cyclicalizy associated with the drilling business. The Company expects to see some near term revenue from a ~preferred provider" status that was obtained with Enron Engineering & Construction Compa.'iy and with Enron subsidia~ NEPCO. First business, involving NEPCO and Active Power (a project in Austin. TX) could occur during Q.4-2000. Loan payments (principal and current and are antmci?azed to be nmel~for9-3.200(k (Transfer to ENA CLO Trust #1) S5.200 MM WATCH - (Continued) Mariner Ener!v (Private Equity & Debt) JEDI & Balance Sheet (Gross Ws) * The mid-year bo,vowmg base re-determination will commence in early September. Mariner will furnish their mid-year internal reserve report to the Bank of Amenca Ivy August 3lst~ As of Aug-Pth there was a balance of $32.8 MM on the $70 MM Bank of America-led revolving credit facility Results for Q-2 were announced on Aug-1(t, but no conference call was held due to Mariner remaining in registration fora possible IPO. For the three months ending Jun-30-2000, Mariner had total revenue of $35.0 MM vs~ $14.8 MM during the similar V9 period EBTTDA of £29.3 MM compared to 310.4 MM for the Q-2-99 penod and net income of 3)0.4MM compared to 3(1.6MM.) during Q-2-99. Mariner will overspend cash flow this year with year 2000 cap-es (including capitalized G&A and interest) estimated to be in the $SS- S9OMlmd range. Oconto Falls (Sub-Debt I Equity & IPVs) Balance Sheet * Agreement has been reached on a 'buy-back" of the IPC r associated with Oconto Falls for approximately $11 MM. A first payment was scheduled for on or about Aug-I 5'~ but was delayed pending final approval and closing. The $5 MM of debt at the Merlin level will remain as the Company is precluded from paying that off prior to repayment of their senior debt ENA will not be participating m the Re-Box Paper facility (a greer,field linerboard project), but future-hedging (Transfer to ENA CLO Trust #1) S 5.000MM Sacramento Basin ExDlarhtlon Venture (50% WI. and a 40% N.R.I.) lED! II & Balance Sheet * (Formerly known as the Amerada Hess Exploration Venture) On 7/28/00 Calpine and ENA IJEDI II agreed to replace the original Prospect Wells with new wells to be proposed by Calpine. The mcrxrnuini comnufrnent was reduced from $SMM to 34MM (with the understanding that ENA has already funded 31.879MM). and the commitment penod was extended to Dec-31-2001. New ~jjsarebein~ r osed and discussed - A1A~rJZinlt,3L~alwpI Venoco. inc. (Pnvate Equity - Cumulative Convertible Preferred Stock) JEDI U & Balance Sheet * The Company has not been successful to date in selling properties to improve their liquidity situation. Extended payment terms had been required in June on the Company '5 fully drawn bank debt Data rooms have been open on three properties, but no bids have been received that Veneco feels are representative of tnae value. The Company has a bullet payment of 311MM due on Oct-la as a result of the extension of payment& Wells Fargo Bank continues to waist to be taken out in its entirety. The CONFIDENTIAL 5 ECTeOl 2321089 EXHO43-0021 7 I~J~T1 A~Q ~ThA1~NT A, ('flNTUfl! PORTFOLIO WATCH LIST-UPDATE AS OF 8131/2000 VAlUES INDICATED ARE FOR ENRON NORTH AMERICA remaining bank debt would then be allocated between the three ban/a remaining in the original ~syndzcec1727me Of the properties (and die company's office building in Santa Barbara, (24) was estimated to have generated proceeds of approximately $32 MM The Company s debt-to- capitalization ratio asofM,~y-30-2000 was 62% (*80 MM debt; $49.6 Mlvi equit~. WE Oil Comnuany (Pnvate Equity) Balance Sheet * A recent well drilled by Coastal at High Island Block 83 was unsuccessfuL Coastal had signed a participaton agreement with ~, whereby they paid S 700K for a 77.5% working interest at High Island Block 85. Coastal was to pay an additional $300K when drilUng commenced on the initial 7 TRO~L~ - Assets for which the returns are considerably less than onginally projected Beau Canada (Common Stock & Warrants) JEDI & JEDI II (Gross #s) * Closed the sale of its Peggo and Thetlandoa assets located an ME. British Columbia on Aug-i 1A* The $66.5 MM received from the sale will be applied to reduce the EIj'IA CLO tenn debt by $25 MM and bank debt and working capital deficiency by $41.5 MM. The Company setAug-2.?~, as the record date for the distribution of Beau Canada's common shares in Genoil Inc. to Its shareholders~ Beau holds approximately 61.6MM common shares of Genoil. or 67% of Genoil's issued capital. on afuily diluted basis. As a result of the distribution. Beau's shareholders will retain their Beau Canada shares and receive two-thirds of a Genoil common share or each Beau Canada share held (Transfer to ENA CU) #1) Briuham EiMonintioa Co. (Sub-debt, Common Stock & Warrants) IEDI It & Balance Sheet * Brigham representatives were in the Houston office last week to discuss a potential restructuring of the EATA / JEt)! II senior subordinated noiL The ENA Commercial team requested that Brigham submit a "buy-out" number that would be inclusive of the entire ENA IJEDIJI investment- mb-note, common stock and wan-ants Brigham is looking to raise £40 MM through a private equi 47 placement and is being advised by CIBC. The Company remains sagn(ficantly leveraged and access to the capital markets is not possible absent a re-capitalization of the balance sheet~ It is unlikely that Brigham will satis,5~ the necessary condition precedents byAug-31", that would allow them top~ P1K dividend interesifor one more quarter, meaning cash payment of dividends will be required beginnu'~g in Q-4-21J00. This will impact cash flow approximately $1.5 MM per quarter. Due to being unfavorably hedged at $2.15 /MCF, the Company will generate little internal cash flow this year. For 2001, the Company has hedged apprer4mately 11.5 MMCF / day (33% of estimated total production) at an average price of £2.35 / MCF. A response from Brigham on the "buy-out" is anticipated shortly. £~u (Privata Equity) JEDI 1 (Gross #'s) * The Company has showm significant improvement in revenue and EBITDA results YTD. EBITDA through the first seven months was at 54.824 AA2.~ an inc'rease of 25% over plan and cash flow of 53.669MM exceeded plan by 3O%~ Revenue rim rate is now in the £4 MAd monthly range. Drilling success has been good with 10 successful wells out of 12 drilled A 30-well program is in place for full year 2000 The ENA Commercial strategy is focusing on proving up the exploration concept of the Company where valuation would be driven by "going concern.' (liven the reasonably strong operational results YTI), no immediate sale of the Caniyany is planned CONFIDENTIAL 6 ECTeOI 2321090 EXHO43-0021 8 ___ - aa&J - = PORTFOLIO WATCH LIST-UPDATE AS OF 8131/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Ecoeas Corporation (Private Equity & Revolving Debt) Balance Sheet *'U~uvi~v IRUM WA1CI-t" the gas tights at Ol~o Alpha and Bowennan locations (Orange County. CA) have expi red and are not being renewed by the counter-parties based upon the counter- parties receiving interest from other companies that were willing to start construction right away. On the Section 40 tas credit issue, the Bracewell attorney representing Ecogas / ENA, feels increasingly less confident that a favorable private letter ruling will beforthcorning from the IRS. Negotiations on the financing at the San Antonio location is continuing with ABE. A corporate guarantee from Enron had been requesteL but AEB has been advised that this will not be possible - the Commercial team believes this will not be an impediment to closing the transaction. As a result of these two deve2opments~ it is unlikely that a pennanent financing facility will be put in place - ABE and Mees Pierson have stated they are not interested in agenting a facility of less than $60 MIt As a resull~ Ecogas will be back to one-ciffinancing for all projects. The FritoLay issue (involving gas penaltIes) has been settled for $1.5 MM. A data room has been opened in Austin and one potential buyer has came through with another one scheduled for Wednesday~ Aug-Set. A gen-set Conipany has also exp ressed hiterest and ubem heduledjor the data room. T ROIJBLED - continued EnSerCo Offshore (foimerly NorAm) (Senior Tena Loam) EnSeeCo i All of the business points for the sale have now been negotiated wish one signature remaining to finalize the deal approval sheet All of the more salient points of the teem sheet were agreed to between the po.rtie± The new entity, biowo as Kingdom Energj~ is being fonned from the combination of a private geo-seismzc compamy~ the coil tubing division of Baker Hughes and a small. cap publicly traded E&P company. The transaction as presently stntctured would take us out at a premium to par on our current carry value. Some recovery from collateral value associated with Noram Rig 232 (which is currently docked in south Malaysia), will also result from the sale. This will be granted en lieu of Enron giving up legal pursuit of the current guarantors of Enserco QO~wr~ Heartland Steel (Senior Debt, Common Stock & Warrants) Balance Sheet * ~'A1O~D FROM WATCH" The project is an estimated 9 months behind schedule. Two steel industry consultants~ previously used by Enron (now employed by Heartland), are at the Terre Haute~ Indiana plant on a daily basis helping to resolve technical/operational issuez The ENA Coemnercial group has extended the forbearance agreement with the bank group headed by PNC-Deutsche Bank Alex Brown to Oct-31-2000. The Compwiy has also been hurt by their purchase of large quantities of steel and zinc (roughly buying Sr more than what has been needed), predicated on production ramping up. When this failed to happen~ a significant opportunity cost of capital began to be incurred with canying the inwnto,~ further exacerbated by the fact that commodity prices were declining for steel and zinc. Near lena liquidiiy concerns include a $10 MM bullet payment due on Aug-31 for die 'special Istrech" revolver and aSS MAd contingency payment related to constniction due on Dec-l3~. The ENA commercial group is working towards the establishment of a 'steel booA~" that may help resolve some of the inventory issue and have helped arrange a one-month extension on the $10 MM pnncapal payment that was due ~ No sub-debt interest is likely to be paid thro~h 2001 (Trauuafer to Condor) S 14.754MM (Transfer to ENA CLO #1) S 15.000 MNI Rurhes Rawis LLC (LLC Membership) IEDI I & Balance Sheet (Gross #'s) Similar scenario of a Company expressing interest and then rescinding its offer following due CONFIDENTIAL 7 ECTeO12321O91 EXHO43-0021 9 RISK ASSESSMENT & CONTROL PORTFOLJO WATCH LIST-UPDATE AS OF 8131/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA diligence continues, with EPL being the latest example. Federalfann-out issues and requirements in federal-offishore-wtersragaisrwere-drmetirissusrpreclwdin~ungrewarentrtu4frrHrsgke.r ~he remaining principal o the LLQ will continuetoattenyit to market the roperties. Ice Drifliny (remi Loan with Warrants) EnSesCo RESTRUCTURING COMPLETED - No major updates since our lost report A reconciliation of the amounts owed indicates C$l,05 7,836 (US$719,616) outstanding on the original US$10 MM (grass) loan after the sale of assets placed in receivership. A negotiated settlement on the deficiency with the guarantors was unsuccessful and legal action is now underway Industrial Holdings 'ilffl" (Term Loan) EnSeiCo * The ENA Legal group has recommended against filing litigation against the Company. due to our unsecured position. The ENA commercial group will be meeting with Industrial Holdings the week of Aug-flu to further discuss the default stems of their loan. The Company did record positive earnings for the Q-2-200 period and hew hired a new CEO as of June i¶ The ENA Restrucwring is mu to cosine recourse against the counter-party TROUBLED - continued Inland Resources (Cumulative Convertible Preferred) JEDI II * RESTRUCTURING COMPLETED. The ENA Commercial group recently met with the President of Flying J to discuss the staas of the merging of certain asset, of Flying J with inland Resources. The agreement remains on track with closing expected on or about Oct-IS ENA was impressed with the strength of Flying J managemen4 as well as their accounting and reporting control .~ystems. The Chase Bank $150 MM credit facility which was a condition precedent to closing has been approved and a specific plan to upgrade the Black Was refinery has been agreed to. The refinery is to be re- conditioned over an approximate 18-month period at a cost of roughly $20 MM Enron will maintain par on our $10 AIM preferred stoct with our absolute common stock position (293 MM shares) maintaine4 but at a reduced ownership percentega There are no restrictions on the common stock held by Enron. ENA commercial has negotiated the right to match any new hedging bid(s), the post co ra bin at osi 9' U! would enter in Kaflas Industries. Ltd.. Canfibre if Riverside. lot. (Debt & fl'C's) Balance Sheet * The British Columbia Supreme Court granted a creditors petiti on filed on Aug-It and oppomnted PrlcewaterhouseCoopers Inc as interim receiver. Reports indicate that some construction continues at the Company's medium density fiberboard ("MDF") plant located in Lockawanna, NT and that production of AIDF has resumed at the Riverside. C4 location. All remaining Kaflis directoa announced their resignation on the day the interim receiver was appointed Kiviss common stock remansszwPendedfromlrad~jgpthercwi4Caneaianach a. (Transfer to ENA CLO Trust #1) $ 60.600MM Oucen Sand Resources. Inc. (Equity - Preferred & Common) IBDI (Gross Wa) * RESTRUCTURiNG PARTIALLY COMPLETED. S&P placed the Company's tripie~!C'~plus corporate credit and senior unsecured debt ratings on Credit Watch with positive implications. That action follows the company's announcement that it expects to realise $74 Mid in net proceeds frcrtn a CONFIDENTIAL 8 ECTeOl 2321092 EXHO43-00220 RISK A~Q ~~~A1~NT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF Sf3112000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA co~mnon stock issuance expected to occur i~' Oct-31-200(A Proceedr will be appliei In part to -purchast 573 l~i of QSRI s~t25-MM-12~%rm7i~tz20083brS49i0MWid repcry 513MM currently outstanding wider its credit facility. After completion of the equity issuance, the company is expected to be considerably less leveraged and to have better liqyidity The investment-banking firm of Fnedman. Billings & Ramsey is advising the Company. The Annual General Meeting of shareholders (Company uses a June-30 fiscal year) Will be held on Sept-1~ in Dallas~ The Company expects to report its Jun-30-2000 year-end results on or before Aug-28-2000. Following the re-capitalisatiorL JEDI will own apprixcimately 229~39) shares of common stocl~ r~resentin~ a 2.04% ownership position in QSRL TROUBLED - continued Basic Enerey (Sierra Well ServIce~ (Senior Secured Notes with Wannnrs and PrefetTed Stock) JEDI U The Company has engaged Jefferies to assist with a private equity placement through a 144A offering to qualified institutional buyern Basic has been actively examining all locations to ensure that rigs and tnwlcr are deployed to the highest margin areas and have moved equipment from two locations as a result of that effort Utilization rates are running ve,y high and the Company should record its first ever 53MM revenue month during August A resolution of Basic's liquidity situation will be required very shortly as they remain in default on their Jun-S (I' principal and interest payment with another principal and interest papoient due on Sept-3(I~. A notice of default has been served to the Company, but th. note has not been accelerated (Transfer to ENA CLO Trust #1) S 52.550 MM Tranacoastal Marine Services ("TCMS") (Subordinated Debt with WaiTants) lED! II RESTRUCTTJPJNG PARTIALLY COMPLETED. TCMS has filed a voluntary petition for Chapter 7 liqiddation, requesting debtor in possession status. The fee for the Bankruptcy Trustee is currently being negotiated The law firm of Andrews and Kurth LLP Is advising the CW Trust in the bankrupicy roceedin. (Transfer to ENA CLO Trust #1) S 20.g0 MM No future cash flows projected and FMV of the asset has been written off. Residual recovezy possible. Belco Oil & Gas (Warrants) JEDI (Gross #~s) * The Belco warrants are out of the money to the extent that it is not likely that any value will be realized unless another transaction Is consummated with Belco that would involve re-pricing the CONFIDENTIAL 9 ECTeOI 2321093 EXHO43-00221 1~TRV 4"~0~'~'T A CflNTUA!. PORTFOLIO WATCH LIST-UPDATE AS OF 8/3112000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA warrants, which strike at $27.50 (A ug-2 8th dosing price of 393/16). The warrants expire ATow25~ 2003. Crown Enera, (Private Eqwty) Balance Sheet * "MOPED FROM TROUBLED" The Crown Ridge production facility a JV agreement between MCMC Pipeline & Processing Company and Crown Asphalt Corp., did not complete its pilot operations dating the Q-2 penoti The continued delays of the pilot operations. indicates that the £663 MM investment that the Company holds on its balance sheet in Crown Ridge has the potential to be irnpai red tfthe facility does not acht eve an acceptable Level of profitable operat2ons~ MCMC will not provide additional woriting capital in excess of the existing loan and Crown Management has been unable to secure additional working capital through other sources. This issue presents a serious test as to Crown's ability to continue as a going concern ENA Senior Management made the decision dunn~ August to mark the asset to zero an the Merchant Por~folioReporL Lyco Enerrr (Private-Convertible Prefeired & Common) .TEDI I and Balance Sheet (Gross #'s) * R&STRUCTUPJNG PARTIALLY COMPLETED. The 32.5 MM payoff of the El~lA preferred and common stock investment is anticipated at or shortly following month ena Lyco is selling cenain Panhandle properties for cash with closing expected no later than Sept-7-2000. The Lyco payoff and the closing of die sale will be scheduled contemporaneous with one another. LOSS - confinued Nakornihal Stii~ Mill (NSMI -ThaiIau~d (Subordinated Notes w/Warrants) Balance SheeL * RESTRUCTURING PARTIALLY COMPLETED. No major news since the lest report The EWA commercial group and internal counsel continue to work towards obtaining releases (two remain - Farallon Capital MgmL & Legg Mason) on the lawsuits that were filed against the onginal unde~4ouyd2atindadedECT Securities. CONFIDENTIAL 10 ECTeOl 2321094 EXHO43-00222