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Joseph Deffner 12/12/2000 01:25 PM

To: Wes Colwell/HOU/ECT@ ECT, David W Delainey/HOU/ECT@ ECT
cc:
Subject: Re: Catalytica d

We monetized it for funds flow through a 125 just last week at about $60mm. I'll get with Corp to go
through any impact from such a rapid write down to the structure or the lenders.
Wes Colwell


  Wes Colwell
12/12/2000 12:55 PM

To: David W Delainey/HOU/ECT@ECT
cc: Joseph Deffner/HOU/ECT@ECT
Subject: Re: Catalytica d

I agree. With the recent increase in Enron stock the credit capacity in Raptor I is approx. $100mm- In any
event, unless we consume the 100 we should not have any downside p&I exposure- I will work with Dick
and my acctg guys to get this booked.

Wes

David W Delainey

  David W Delainey
1211212000 12:31 PM

To: Wes Colwell/HOU/ECT @ ECT, Joseph Deffner/HOU/ECT @ ECT
cc:
Subject: Catalytica

Guys, I suggest that we write it down in order to ensure that we don't get it back as other groups use up
the Raptor capacity. We have sufficient market data points to do this. Please advise.

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/ECT on 12/12/2000 12:30 PM ---------------------------

  Richard Lydecker@ENRON
12/12/2000 10:50 AM

To: Thomas E White/HOU/EES @EES, David W Delainey/HOU/ECT@ ECT, Brian Redmond/HOU/ECT@ ECT
cc: Wes Colwell/HOU/ECT@ECT, Andrea V Reed/HOU/ECT@ECT, Barton Clark/HOU/ECT@ECT
Subject: Catalytica

Catalytica filed a prospectus supplement with the SEC yesterday, December 11th which disclosed that
because of recent market conditions the Board had decided not to proceed with the planned stock split

EXH009-00106

GOVERNMENT
EXHIBIT
  2843
Crim. No. H-04-25 (S-2)


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prior to the spin-off. The supplement indicates an expected initial trading range "at a price between $20
and no less than $10 per share". Based upon these new Catalytica's estimates, the value of the Enron .
investment would be $13.5 to $27.0 million. Enron's Catalytica investment is part of the raptor structure so
that the impact is on raptor capacity rather than earnings. The investment. has also been monetized in a
FAS 125 structure for cash flow purposes.