m~rmL pm*~ae,siv~4p ~ ~~:: ~ ~ ENRON NORTH AMERICA PORTFOLIO WATCH LIST UPDATE AS OF 7/21/2000 IA1 Distribution: Buy, Rick Delainey, Dave Donahue, Jeff Frevert, Mark Ilaedlcke, Mark (via cc:Mail) Lydecker, Richard (via cc:Mail) Skilhing, Jeff Sutton, Joe (via cc:Mail) PLEASE NOTIFY RICK CARSON AT X3-3905 WITH QUESTIONS OR COMMENTS CONFIDENTIAL GOVERJNMENT EXHIBIT 24590 Crim No H 04-0025 EXHO43-00201 I RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2009 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Cost & Cany Values as of 6-30-2000. Market Values from Merchant Portfolio Report Dated 7-17-2000. TABLE OF CONTENTS WATCH ASSETS......................................................................3-5 Bonne Terre Lewis Energy Group Sacramento Basin City Forest Linder Energy LLC Venoco, Inc. (NEW) Cypress Exploration LSI Specialty Corp WB Oil Company DPR Holding Ecogas Heartland Steel Juniper Exploration TROUI3LEJ) ASSETS............................................7- 10 Beau Canada Brigham Exploration C-Gas Crown Energy EnSerCo Offshore Hughes Rawls Ice Drilling Industrial Holdings Inland Resources Kafus Industriesl Canfibre Queen Sand Resources Basic Energy (Sierra Well Service) Transcoastal Marine Mariner Energy Oconto Falls LOSS ASSETS......................................................10 Belco Oil & Gas Nakomthai Strip Mill Lyco Energy RESTRUCTURED ASSET ACTIVITY In ProRress I Partially Completed Restructurings Completed Brigham Exploration Camzo Oil & Gas C-Gas Costilla Energy Crown Enemy Eugene Offshore Holdings, LLC Enserco Offshore Forcenergy Gasco Distribution Ice Drilling Hogan Exploration Inland Resources Hughes Rawls LLC Repap Resources Industrial Holdings TriPoint~, Inc. Kafus Industries / Canfibre Qualitech Steel Lyco Energy * CONFIDENTIAL EXHO43-00202 2 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2090 VALUES INDICATED ARE FOR ENRON NQRTH AMERICA Nakornthai Stri Mill * Basic Energy (Sierra Well Service) Transcoastal Marine * WATCH Assets displaying early warning signs of potential weakness that deserve close attention. Bonne Terre Exploration (Limited Liability Company) JEDI fl & Balance Sheet ENA Commercial is currently preparing a supplemental Deal Approval Sheet to be presented to management for continued development in Cameron Parish Louisiana. If approvea~ ENA will pursue (1) dissolution of the Bonne Terre LLC and maintain independent ownership in the project area; (2) acquire a separate license to the 3D data set from Seitel; (3) drill identified prospects in Cameron Parish with partners Nexus Resources, inc. and Sam Gary Jr. & Associates The DASH also contemplates a sale of the Black Bayou dome field to one of three candidates and projects a planned sell down to prospective partners of ENA 's interest in the identified prospect areas within the project boundaries. The original program inventory has been drilled up or abandoned Production from 2 wells at the Saturday Island field location continues, with monthly net cash flow of around $3.5 OK to the LLC. City Forest Corporation (Senior! Sub Loans, with IPC's) Balance Sheet and ENA CLO Trust #1 * Operational issues with the "Yankee" dryer have been somewhat resolved The crown on the dryer was reground enabling the machine to run at higher production speed with less wrinkling of the tissue. Fine-tuning of the process will continue, as the operational efficiency target for the machine is in the high 80% range, vs. current actual efficiency in the low 80% range. Lower than expected cash flow from the previous technical d~fficulties will be experienced through the end of Q-3 and possibly into Q-4-2000. The Company may choose to pursue compensatory damage claims from the OEM provider due to the failure of performance tests. This will not likely be done until the current operational issues are resolved The asset will be left on "Watch" until the technical d?fficulties are fully addressed / remedied and cash flow is normalized (Transfer to ENA CLO #1) Cypress Exploration (Working Interest) Balance Sheet * The previous "NewCo" concept involving Allen & Companj~ the New York based I-bank that was to provide investors and Resource Acquisition Corp. has now been dropped in favor of moving forward with the Bill Rogers group out of Lafayette. Louisiana. The Thornwell property in Jefferson Davis Parish Louisiana, is likely to be monetized in the near future through an agreement with Manti & The Meridian Resource Corp. The value (based on current price curves), is in the $26.8 MM range. New prospects are also being identified with an emphasis to move to a drillable stage fairly quickly, thereby mitigating delay rentals on the leases that are estimated to be in the $2 -$3 MM ran gefor year 2000. DPR Holding Com~anv. LLC (Senior Debt & Private Equity) JEDI II & Balance Sheet 3 EXHO43-00203 CONFIDENTIAL RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 712112000 VALUES INDICATED-ARE FOR ENRON~NORTH AMERICA- While first quarter results were less than torecast the month o May had favorabi mz2a&Ionsi~it& - -- - production of 358,000 tons EBITDA of $2.0 MM and net income of $0.8 MM. YTD through Jun-2'f", DPR 's tonnage amounted to 2.0 AIM, exceeding budget by 3%. The Dakota mine experienced roof control problenu~ which hampered performance in ApriL The Remington mine continues good ~erfonnanceVexce-edffgbdg~t~Zttonnage by )% tlli~i i7Tun-. As o Jun-24 , the Panther mine slope and shaft project to the Eagle seam was nearly completed~ The driving of the slope was finished and the shaft drilling was within 30 feet of completion~ Production is scheduled to begin at Panther (Transfer to ENA CLO #1) $23,504 MM WATCH - (Continued) Ecoi~as Corporation (Private Equity & Revolving Debt) Balance Sheet * Two banks, Meeis Pierson and ABB have sent commitment letters on the $60 MM long-term financing facility. Enron has delayed signature until hearing from the Internal Revenue Service regarding the Section 40 tax credits. Enron counsel has been in discussions with the IRS and believes that afinding on the private letter ruling will occur within 30 days. The ENA commercial group does not want to exceed the cap on the revolver, pending the private letter ruling and accordingly have been strictly monitoring all costs including legal billings. Some staff reductions were made at Ecogas the week of June 26". A positive Section 40 ruling adds conservatively $30 MM to Ecogas'equity value. Ecogas recently closed a $5.2 M?~vf Section 29 tax credit monetization with Fidelity Investments on the McCommas B luff facility in Dallas~ with $2.5 MM of the proceeds sent to Enron to pay down the revolver. Randy Maffelt (ENA Commercial), has negotiated a settlement with Frito Lay regarding gas penalties (the ehiference between what gas was purchased for and $215) on volumes that were not delivered - the settlement has been presented to ENA senior management/or ap?rovaL ~ Heartland Steel (Senior Debt, Common Stock & Wa~ants) Balance Sheet * A new action plan has been agreed to following a recent on-site visit to the plant location, with a meeting with the senior lenders and the investor group scheduled/or the week of July 24". At that time a project update will be furnished, current production and future estimates will be discussed and an overview of a revised financial model will be laid out A total re-capitalization effort may be required asrecent ENA Commercial modeling reveals that the Company is likely to run out of cash in late Q-4. ENA has entered into aforbeareance agreement with the senior lenders PNC & Deutsche Bank that will be good until Sept-3 (I". ENA will also be meeting with Bankers Trusi who were the original investment advisors to the Company and who continue to hold an equity ownership position. An ongoing search and interview process is underway for a permanent CFO position~ with placement expected by late July An Enron hired consultant is working with Heartland on issues involving the integration o/ production and management reporting systems. To maximize efficiency, scheduling and production system software will likely need to be purchased, with cost estimates in the $2 A#-f range. (Transfer to Condor) S 14.754MM (Transfer to ENA CLO #1) $ 15.000 MM Juniner Exnloration (Limited Partnership) JEDI II & Balance Sheet * ENA has approved AFEs for prospects on Eugene Island 60. Eugene Island 80 and West Cameron 310. Juniper intends to retain 50% and find a partner to take the other half in the 3 prospect package. Samedan has shown considerable interest in pursuing the package and formal discussions CONFIDENTIAL 4 EXHO43-00204 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA will begin this week Clay Harmon, a principal at Jumper gave ENA a technical prospect presentation Ju472tS~z,,i Eu~,i~ Uund j gp, nugene isi ittF6,vermuzon oi ana Lugene Isiana .~ /L)rillzng success for the Partnership remains a concern with 15 wells having been drilled to date and only 6 currenhlyhavng~oroductior WATCH - (Continued) Lewis Ener!v GrouD ("LEG") (Limited Partnership & Tern, Loans) JEDI I (Gross #'s) a LEG has paid a non-ref undable fee of $IOOK allowing them to extend the closing to July 3Jfl, on their buy-out of JEDI '5 35% ownership interest in the Lirn ited Partnership. The total buyout from LEG will be approximately $15.6 MIM -- cr~~-~ (Transfer to ENA CLO #1) $ 2.392 MM Linder Ener~v LLC: (66.7% Membership Interest) JEDI II & Balance Sheet * An ENA internal review of the original 1998 third-parzy engineering findings by Collarini Engineering. inc. (New Orleans), has resulted in a downward adjustment to reserve values. The PVI2 value of the reserves exceeds the amount currently outstanding, but SO%o + of the reserve value is now behind pipe and will require cap-ex dollars to be brought on line. The principals of Linder, as 25% working interest owners, have been capital constrained lacking the financial liquidity to convert the behind pipe reserves to the producing category Distributions, analyzed on a semi-annual basis by ENA, are currently at 99~'/o to JEDI 11 / ENA. The ownership percentage is adjusted as necessary to ensure a 12% rate a/return (floor distribution is 66. 7~'o). Distributions received from the LLC have improved over the past couple of months (driven by strong commodity prices), with $ 748K received for May and $74 OK received in June The avera e monthly d~stnbution during 1999 was $400K LSI Electric SDecialty Cow (Sr. Term Loan, Preferred Stock and Warrants) JEDI II & Balance Sheet * No large rig orders have been placed lately, although the Company has a potential $2 MM deal that is being negotiated with a customer in Singapore. Some delays could occur on short lead-time, over the counter orders, due to working capital constraints and general liquidity issues. The Jun-3(/' loan payment (principal and interest) was made on time. The '99 year-end financial statements have been finalized and did not contain a qualified audit opinion from the Company's auditori Deloitte & Touche. The clean audit opinion was facilitated by Enron waiving financial covenant violations through Jun~3(fh. LSI has gained "prefrrred provider" status with Enron Engineering & Construction Company and with Enron subsidiary NEPCO. First business involving 1'IEPCO and the ENA merchant investment; Active Power (a ro ect in Austin, 7W could occur dunn -4-2000. (Transfer to ENA CLO Trust #1) CONFIDENTIAL 5 EXHO43-00205 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2090 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Mariner Enerizy (Private Equity & Debt) JEDI & Balance Sheet (Gross Wa) ~eenngs were neLa' witif MOrgan jtanIeyD~iEWrner on June 1 YLJI and USIzrss t5oston on June 20th to get status reports on the public equity capital markets~ Based on the discussions; Mariner will wait to refresh the S-I filing until either the IPO window opens or, the SEC asks for the document to be upd~ted-~h-woiiIdafier-Jul-3l -2000. - __________________________________________ (Transfer to Iguana) S 71.308 MM Oconto Falls (Sub-Debt / Equity & IPC's) Balance Sheet * The Enron CLO debt position and the ENA Income Participation Certificates will likely to be taken out by new equity investor& ENA will re-invest into the Re-Box Paper facility (a greenfield linerboard project) via a 90-day bridge loan and sub-debt. The majority of the project debt will move from the bridge facility to the Bank of Nova Scotia pending the finalization of the Bank's due diligence. Enron will hold $35 AIAd in senior subordinated debt and will also enter into physical supply and financial hedges with Re-BoL ENE Global Finance will syndicate the sub-debt into a CLO structure, pending an ElsiE construction guaran~y. (Transfer to ENA CLO Trust #1) $ 5.000MM WATCH - (Continued) Sacramento Basin Exyloration Venture (50% WI. and a 40% N.R.I.) JEDI II & Balance Sheet * (Formerly known as the Amerada Hess Exploration Venture) A deal approval sheet for restructuring is being circulated to senior management Currently ENA / JEDI II has a $3 MM remaining commitment (expiring Dec-31-2000) to drill prospects within areas of mutual interest in the Sacramento Basin. To date $2 MM of the original $5 A42'.'f commitment has been spent drilling, resulting in one producing welL ENA 's cost basis is $1.25 MA4 with net distributions received through Apr-2000 of $524K Fair value write-down is $ 72 6K for a current carry value (net) to ENA of $0. The new proposal reduces the gross commitment from $3 MM to $2 MM ($1.25 Mlvi net to ENA). The existing slate of properties would be scrapped and replaced by new prospect& The new prospects have been reviewed by the ENA technical staff and the two California prospects are designated to be of higher quality than the previous. Calpine would have to invest additionalfi*nds in each proseect as welL The tenmnatzon date 0/this commitment will be extended to Dec-31-2001. ~oIIic. (Private Eq~~ - Cumulative Convertible Preferred Stock) JEDI II & Balance Sheet * MOVED FROM "PERFORMING" The Company has requested extended payment tenns on its fully drawn bank debt and is looking to rationalize assets to increase liquidity For a $IOOK fee, $ 6.6 MM of bank debt due 7/1/00 has been re-negotiated down to $2.5 MM and the remaining $4.1 MM of the payment has been extended to 10/1/00 (next quarterly payment), which will result in $11 MM due at that time. During Q-3, Venoco will attempt to sell three properties (Big Mineral CreeA Texas and Gasaway and Cedar Bench, Colorado - data rooms currently open) and their office building in Santa Barbara, CA. which collectively is anticipated to bring in approximately $32 MM. The proceeds from the sale will be used to reduce bank debt; take out Wells Fargo Bank debt in total and restructure the remaining debt between 2 or 3 banks. The debt to capitalization ratio as of 5/31/00 was 62% ($80 MM debt; $49.6 MM equity). Venoco 's properties are concentrated in geographical areas of California that are environmentally sensitive, limiting future exploratory opportunities. The political climate is also not currently conducive to opening up exploratory possibilities. As a result; a near term liquidity event such as an fF0, that would allow Enron to monetize its investment; is considered unlikely. - ~ CONFIDENTIAL 6 EXHO43-00206 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7121/2000 VALUES INDICATED ARE FOR ENRONNORTH AMERICA - - WB Oil Company (Private Equity) Balance Sheet * No updates since our last report. 4~%~~i~M TROUBLED - Assets for which the returns are considerably less than originally projected. Beau Canada (Common Stock & Warrants) JEDI & JEDI II (Gross #' s) * Announced Jul-i 1~ that is has entered into an agreement to sell its entire interest in the Peggo gas property (current production of 20 Ad] vICF / day) for proceeds of C$66.S MM Effective date of the sale is July 1, with expected close by mid August; pending completion of docwnentation and approvals, with proceeds to be applied to reducing a working capital deficit and to retire existing debt Bank debt, term debt and working capital will be reduced to a combined total of approximately C$200 AdlvL The Special Board of Directors Committee has decided to reopen the Company data room and will begin contacting potential parties within the next couple of weeks. Beau ~r Annual Meeting will be held on Wed-Jul-26th in Calgary. Beau common traded down on the news, hitting a 52-week low of CS 1.53 intro-day on Tues-Ju1-1~. The Enron exit strategy in Dec-2000. remains to be clearly definetL but the likely take-out is an Enron (ENA CLO Trust #1) or other third-party a- finance (Transfer to ENA CU) #1) $26.685 MM Brieham Exploration Co. (Sub-debt, Common Stock & Warrants) IIEDI 11 & Balance Sheet In order to pay P1K dividend interest for the Q-4-2000 perioa~ the Company must do one of the following no later than Aug-31-2000: I) sell common or preferred equity, resulting in net proceeds after costs and expenses of $10 MM~- 2) acquire in exchange for common or preferred equity oil and gas properties containing PDP & PDNP rese,ves with a collective NPV 10% of at least 510MM; or 3) through a combination of# I and # Z receive net proceeds and newly acquired properties that total at least NPV £10 AdA-il if at least one of these requirements is not satisfied cash interest will be mandated for the Q-4-2000 period Due to being hedged at $215 /MCF, the Company will generate little internal cash flow this year. While drilling success lTD is good~ the Company continues to be highly leveraged and will need a cap-ex budget of approximately $30 MM in 2001. CJBC has been ret~n~~hamto assist with a re-capitalization plan. C-Gas (Private Equity) JEDI I (Gross #'s) CONFIDENTIAL 7 EXHO43-00207 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2000 ENA VALUES INDWATEI) ARE FOR ENRON NORTW AMERICA -~ - * Commercial strategy is focusing on proving up the exploration concept of the Company where -. valuation would be driven by going concern." Results through the first five months of the year are ahead of plan~ with actual EB1TDA for that penod coming in at $3.215 MM vs. plan of$2.S4OMM a 27% increase and actual cash flow coming in at $2.4O6Mlvl, vs. plan of$J. 669 MM, a 44% increase. A-3O~well-progranris-i~i-pacefore7earth-6-successfully-driu1~twltrd date (through un- out of 8 attempted Given the reasonably strong operational results YTD, no immediate sale of the were viewed as not indicative ~ Company is planned Previous offers received....................o~grue enterprise value. ~ 1~e7~M~ Crown Energy (Private Equity) Balance Sheet * On May-26-2000, Crown received notice that MCNIC had elected to exercise its option to assume operations as Operator of Crown Asphalt Ridge LL. C. 's ("CAR ") facility in Vernal, Utalz effective Jun-26-2000, from the wholly owned Crown subsidiaty Crown Asphalt Corporation ("CAC'2. MCNIC has the right to replace CAC as Operator by the CAR Operating Agreement and a Jan-20- 2000 letter agreemenL MCNIC will become Operator under a new Operating and Management Agreement similar to that currently in effect. On Jun-20-2000, MCNIC also filed a Complaint in the Third Judicial District Court; Salt Lake County, Utalz against Crown Distribution. The action seeks to foreclose on alleged mortgage and security interests in certain real and personal property of Crown Distribution. MCNIC also alleges that the total amount owed by Crown Distribution to MCNIC is in excess of $15 MM, as well as interest at the rate of 18% from Jan-1-2000 until paid in fulL Crown common stock continues under pressure and is down over 37% YTD. TRO~~L~ - continued EnSerCo Offshore (formerly NorAm) (Senior Term Loan) EnSerCo * A term sheet has been signed with a newly formed entity to purchase the rig. The new entity is being formed from the combination of a private geo-seismic company, the coil tubing division of Baker Hughes and a small-cap publicly traded E&P company. The transaction as presently structured would take us out at a premium to par on our current carry value. Potential recovery from collateral value associated with Noram Rig 252 (which is currently docked in south Malaysia), may also be possible, in return/or droe ing legal pursuit from the ftuarantors. ',--~ Hu!hes Rawis LLC (LLC Membership and Senior Loan) IIEDI I & Balance Sheet (Gross ti's) * An offer tendered by Wiser Oil Company, for $3.3 MMfor all of the B~zy Marchand properties has been withdrawn. Federal farm-out issues and requirements in federal offshore waters, presented issues that Wiser could not become comfortable with. Dudley Hughes, the remaining principal of the LLC, will continue to market the pro erties. Ice Drillinf (resin Loan with Warrants) EnS erCo * RESTRUCTURJNG COMPLETED - No major updates since our last reporL A reconciliation of the amounts owed indicates C$1,05 7,836 (US$719,616) outstanding on the original US$10 MM (gross) 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 HoIdin~s "11111" (rerni Loan) EnSerCo CONFIDENTIAL 8 EXHO43-00208 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2000 VALUES INDICATED AREFQR ENRONNORTH AMERiCA -~ - Negotiations have broken down on the restructuring of the note that is in default The latest proposal counrer-offerea oy me company asicep bJVA to accrue and capitalize existing overdue interest, to lower the proposed coupon rate on the note from 18% to 11% and to accept a reduced number of less favorably priced warrants. The ENA Restructuring Group is meeting with internal Legal counsel to -examine recourse-a go st-ihe-counter~party~--- Inland Resources (Cumulative Convertible Preferred) JEDI TI * RESTRUCTUPJNG COMPLETED. Two important conditions remain to be fully negotiated regarding the closing of the Flying J / Inland merger. The Chase Bank $130 Mlvi credit facility is being finalized and a spec p'ic plan outlining the upgrade to the Black Wax refinery must be agreed to. The refinery is to be re-conditioned over an approximate 18-month period at a cost of roughly $20 AIM Enron will maintain par on our $10 MM preferred stocA with our absolute common stock position (2.93 Mlvi shares) maintained, but at a reduced ownership percentage. ENA commercial has negotiated the right to match any new hedging bid(s), the post merger Company would enter into. Current Inland senior management will be stepping down when the merger closes. ~ ~i~v TROI~L~~~ - continued Kafus Industries. Ltd.. Canfibre of Riverside. Inc.. (Debt & IPC's) Balance Sheet * The strategic focus has shifted to completing current projects, reducing overhead and simpl jfying the capital structure of the Company. A branch corporate office in Boston and a marketing affiliate office in Newport Beach, CA will be shut down~ Kenneth SwaislancL founder of the Company and its CEO and largest stockholder has resigned Agreement has been reached in principal whereby Swaisland will sell all of his stock to another major investment group, Berkeley Investments. Michael McCabe, President & COO, is now responsible for the day-to-day operations of the Company A new CEO search is underway with a new management team likely to be established once that individual is in place. Randy MaffetL ENA Commercial~ is now a member of the Kafus Board of Directors. The common shares continue under pressure, recently closing in the $3 1/8 range and are down 58.04% (Riverside) er Kafus) queen Sand Resources. Inc. (Equity - Preferred & Common) JEDI (Gross Ii's) * RESTRUCTURiNG PARTIALLY COMPLETED. The Company is finalizing discussion with the investment banking finn of Enedman, Billings. Ramsey regarding a re-capitalization~ An Enron DASH is being circulated that describes a proposal involving a reverse split on the common, reducing shares outstanding to around 2 'A MM to be followed by a secondary common offering that would raise an approximate $80 MM From the proceeds of the secondary offerin& $20 MM will be CONFIDENTIAL 9 EXHO43-00209 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7121/2000 VALUES INDICAThD ARE FOR ENRON NORTH-AME-RICA - allocated for acquisition and joint venture activity. The net effect of the common transactions will reduce our preferred and common stock ownership position; but will potentially increase our value, via the increased equity capitalization of the Company. QSRI 's $125 AN 12 'A% senior noteholders (3 institutional 144A holders) would convert $75 MM at approximately $0.60 cents on the dollar and woild-take-equtfor-tlreir remaining ~ ~07MI7~ Basic Enerey (Sierra Well Service) (Senior Secured Notes with Warrants and Preferred Stock) JEDI II The Sierra IPO was pulled by Prudential due to the additional offering of 1.5 MM shares (30+% increase) not being well received Enron has stepped back into an active asset management role, via our 45% equity (61% voting) ownership interest and the 4 Sierra board seats we hold ENA commercial and Enron RAC members recently met with Sierra management in Midland for strategic discussions, with consideration being given to assisting the Company with leasing a new "truck" fleet of around 20 vehicles. This would require minimal capital outlay with each truck projected to generate EBITDA of around $ISK per month, giving the Company increased visibility in the land drilling sector and sustaining financial viability as Enron looks to partner the Company with a suitable merger candidate. The 20 trucks would collectively generate annual EBITDA of roughly $3.6 MJ.d and applying a 5x EBJTDA multiple would conceivably increase enteqirise value by $18 MM An immediate, near term liquidation of total assets~ given the failed nature of the IPO and the sign~fi cant leverage of the Company, would be projected to net roughly $25 A4M~ If the Company can "buy" itself 90-120 days of additional time by ramping up its truckfleet, liquidation value at that time could potentially increase into the $40 -$45 A4M range. (Transfer to ENA CLO Trust 111) $S1.735 MM TROUBLED - continued Transcoastal Marine Services ("TCMS") (Subordinated Debt with Warrants) JEDI II RESTRUCTURING PARTIALLY COMPLETED. TCMS has flIed a voluntary petition for Chapter 7 liquidation; requesting debtor in possession status~ TCMS 's wholly owned subsidiary, Dickson GMP International previously filed a voluntary petition for Chapter 11 Reorganization~ The fee for the Bankruptcy Trustee is currently being negotiated The law firm of Andrews and Kurth LLP is advising the CLO Trust in the bankruptcy proceeding (Transfer to ENA CLO Trust #1) S 20.00MM LOSS No future cash flows projected and FMV of the asset has been written off. Residual recovery possible. Belco Oil & Gas (Warrants) JEDI I (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 warrants, which strike at $2750 (Jul-14~" closing price of $8 15/16). The warrants expire Nov.-25- 2000. CONFIDENTIAL 10 EXHO43-0021 0 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 7/21/2000 - VALUES INDICATED ARE FOR ENRON~NORT-H AMERICA - Lyco Enerty (Private-Convertible Prefeired & Common) JEDI I and Balance Sheet (Gross #'s) a RESTRUCTURING PARTIALLY COMPLETED. Arrangements for the pay-off our prefr rred and - ---- - common-stockmvestmentfor$.l f(approxnrate1y$fr5O~grny~niJwd~uar) have heeWiI~d~ back until July 3J~. Nakornthai StriD Mill (NSM) -Thailand (Subordinated Notes w/Warrants) Balance Sheet_ * RESTRUCTURING PARTIALLY COMPLETED. The Bankruptcy Council of Thailand has agreed to a re-capitalization of the Company but status quo will be maintained until creditors officially vote. The ENA commercial group and internal counsel continue to work towards obtaining releases (two remain - Farallon Capital Mgmt & Legg Mason) on the lawsuits that were filed against the original underwriting group that included ECT Seajrities. CONFIDENTIAL EXHO43-0021 1 11