riA~ ;*Pt II C~Rt!OI ~ ENRON NORTH AMERICA PORTFOLIO WATCH LIST UPDATE AS OF 9125/2000 + $ A - F Distribution: Buy, Rick Delainey, Dave Donahue, Jeff Frevert, Mark Haedicke, Mark (via cc:Mail) Lydecker, Richard (via cc;MaIl) Skilling, Jeff Sutton, Joe (via cc:Mail) ii PLEASE NOTIFY RICK CARSON AT X3-390S WITH QUESTIONS OR COMMENTS CONFIDENTIAL ECTeOO465O321 EXHO43-00032 I GOVERNMENT EXHIBIT 24592 Cnm No H 04-0025 -'4 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/25/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Cost & Cany Values as of8-31-2000. Market Values from Merchant Portfolio Report Dated 9-21-2000. TABLE OF CONTENTS WATCH ASSETS.........................................................................3-6 Banne Taie Exploration Lander En&gy LLC Sacramezto Basin Exploration City Forest Corporation LSI Eledric Specialty Corp Vniooo, Inc. Cypress Exploration Mariner Eneiiy WB Oil Company DPR Holding Camnpany LLC Ocanto Falls Juniper Exploration TROUBLED ASSETS.......................................................................6-9 Beau Canada Hughes Rawis LLC Kafus Industnes/ Canfibre Brigham Exploration Co. Ice Drilling Queen Sand Resources, Inc. C-Gas Industrial Holdings "IHII" Basic Energy (S jerra Well Service) ECOpS Inland Rasources Transcoastal Marine Ser'.'ices EnSeaCo Offshore Heartland Steel LOSS ASSETS............................................................................. Belco Oil & Gas Lyco Energy Crown Energy Nakornthai Strip Mill RESTRUCTURED ASSET ACTIVif V In Progress I Partially Completed * Restructuring, Completed Brigham Exploration Carrazo Oil & Gas C-Gas Costilla Energy Crown Energy Eugene Offshore Holdings, LLC Enserco Offshore Forcenergy Gasco Distribution Ice Drilling Hogan Exploration Inland Resources Hughes Rawls LLC Lyco Energy Induatnal Holdings Repap Resources Kafus Industries I Canfibre TnPoint, Inc CONFIDENTIAL 2 ECTeOO465O322 EXH04300033 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 925/2000 VALUES INDICATED ARE FOR EN RON NORTH AMERICA NSM - Thailand * Qualitech Steel cen Sand Resources ~ Basic Energy (Sierra WcIl Service) Transcoestal Marine * WATCH Assets displaying early warning signs of potential weakness that deserve close attention. Bnne Terre ExDloratlon (Limited Liability Company) JEDI II & Balance Sheet * Certain issues re~rding the dissolution of the TIC continue to be sorted out, including the number of seismiC Licenses granted and acorn to the seismic data. The formal dissolution of the LW has also been delayed due to time demands on E1~JA counsel. The insurance company has denied a 5750K oil spill claim, related to an incident that occurred in March at the Black Bayou field in Louisiana. Further pursuit and discussion of the claim is widmvay with the insurance broker and the imderwriters. Following dissolution of the pamnerahip, ENA will be working 'with new partoers, Manti and Tn-C to manage the assets and the chilling ~uvgrum. Negotiations are progressing with RIMCO to sell the Black Bayou dome field. CIty Forest CorporatIon (Senior/ Sub Loans, with IP's) Balance Sheet and ENA CLO Trust #1 * August EB1TDA was 5200K below plan, but current production levels as{d pricing are adequate to service debt. Monthly cash flow is currently averaging around 5600K. vs. a plan of 5825K Liquidity issues will remain tight through the first of November, but the major technical issues with the i*4 tissue machine, are mostly resolved mid opaitional issues are confined to the expected normal start-up type. The semi-annual Interest payment that was due on Sept I~ was made on time (Transfer to ENA CLO #1) Cypress Exploration (Working Interest) Balance Sheet * A deal approval sheet was recently signed allowing for the additional funding of 54.9 MM. allocated, as follows: $800 K to fund G&A for a prospect generation shop for six months; 5220K to fund seismic needs; 5550K for lease rentals and 533 Mlvi for the drilling and completion of three wells Approximately one-third of the drilling allocation was spent the week of Sept-l gtk~ the Bernard #1 was spudded at a diy hole cost of 51 Mlvii Drilling milestones have been established and prospects will not be pursued unless strict standards me met. ENA has funded 582.5 MM to date, received distributions of $275 MM and has accrued distributions of approximately $4.0 Mlvi, for a net outflow of 551 MM. Current proved reserve value (PVIO on the strip) is roughly $30 MM~ producing 52.5 - 53.0 MM per month of cash flow. ENA is preparing to issue a Volumetric Production Payment with the Thomwell Field reserves and believes this strategy is repealable. A cohesively defined exit strategy for the entire asset will be out-lined before ear-end. DPR Holding Com~anv. LW (Senior Debt & Private Equity) JEDI 11 & Balance Sheet * The repurchase of the Panther mine loan by the pnncipal (Chris Cline), has been delayed, pending negotiations with AT. Massey on the Jupiter - EaaJe IV Agreement. If agreement in principal for the IV Agreement can be reached and approved internally by ENA, then the Panther transaction should move forward. A corporate guarantee from DPR Holdings and a personal guarantee from Chris Cline backstop the loan to Panther. The valuation for the income participation certificates associated with the Panther mine was informally agreed to at 52.9MM. ENA will retain the right to market Panther's coal. The JEDI II / ENA net gain on the transaction is expected to approximate 5400K. The mines have been under tonnnge for the last couple of months due to vacation time in July, problems with Eastern's prep plant belt being shut down, and roof and rib problems in all three sections of the Dakota mine. The CONFIDENTIAL ECTeOO485O323 EXH043-00034 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/25/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Dakota mine has shown some improvement in September, producing 42,000 tons during the week ended Sept-16'. vs. plan of 43,000 tons Financial covenant violations were noted at all three mines for nng Jw~-30-2000. (rramfer to ENA CLO #1) S23.054 MM WATCH - (Continued) Junloer Esnioratlon (Limited Partnership) JEDI II & Balance Sheet * Drilling results for the partnership remain disappointing with a total of 14 wells drilled to date with 6 currently producing. 6plu~ed & abandoned and 2 being re-coinpleteL The Win. Cobb independent third-pasty reserve report as of ~ indicates PVIO value for current total proved reserves of approximately 35.2 BCF, considerably below what was originally niodeled in the base case economics At the current time, cash flow from the Bay Marehand, Eugene Island 28 and Eugene Island 57 Llnder Eneray LLC: (66.7% Membership Interest) JEDIII & Balance Sheet * A meeting was held with Linder officials on Sept-9', regarding the partnership distribution interest re- determination that will take effect as of Oct-1~ and a potential buy-out of the ENA I JEDI II interest. Additional discussion involved the status of the most recent reserve report, changes in production profiles, remaining reserves and the tuning of capital expenditures for behind pipe reserves. The PVI2 value of the reserves exceeds the amouriteurrently outstanding, but approximately 50/. of the reserve value is behind pipe and will require cap-ex dollars to bring it on line. Linder, as a 25% working interest owner is not financially incentivized to bring the behind pipe reserves on-line as distnbutions are currently running 99% to lED! ill ENk The ownership percentage is adjusted to attempt to ensure a 12% rate of return (floor distribution is 66.7). An offer by Linder to buy out our interest at cost, with nsider~ LSI Electric Soedalt'v Corv (Sr Terni Loan, Preferred Stock and Warrants) JEDI II & Balance Sheet * The Company has re-paid in full their ENA S500K working capital loan and arc now in discussion with potential lenders (Toronto-Dominion - very involved) to refinance their entire outstanding debt, including the $5.2 MM, ENA CLO Trust debt that matures March-2001. Loan pa)wents (principal and interest) are current and were timely made for Q-2-2000. LSI continues to re-think their basic business model to possibly include a total cable inventory management system that would better allow them to withstand the inherent cycicality associated with the drilling business. That business line would also provide larger revenue over a less capital-intensive asset base. LSI continues to work the "preferred provider" status that was obtained with Enron Engineering & Constniction Company and with Enron subsi , NEPCO First business ishkely to come from the Austin Power Pro1ect. (Transfer to ENA CLO Tnsst #1)SSiOOMM Mariner Enersy (Private Equity & Debt) lED! 1 & Balance Sheet (Gross s's) * The ENA Global Risk Markets Group is proposing to structure a senior secured bullet note for all of Mariner's existing debt and covert ENA's current funded debt exposure into a first loss position. The. debt included in the refinancing will be the S100 MM of high yield 144A bonds and a portion of ENA's $112 MM senior credit facility. The transaction will be facilitated through a special purpose vehicle ("SPy") that will raise equity and bank debt sufficient to loan Mariner enough capital to CONFIDENTIAL 4 ECTeOO465O324 EXHO43-00035 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/25/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA redeem the high yield notes and sub-debt at par and to pay transaction fees and insurance premiums. The SPV will purchase an insurance policy to guarantee P&I payments on the bank debt The transaction will result in tree ENA nak transfer of approxunately $62 MM, the amount that will be guaranteed by the insurance company. Mariner Management has also held recent discussions with Cs First Boston regarding the merits of a Q-4-2000 IPO vs. a mid-year 2001 offering, updating the Mariner story to include the mid-August acquisition of Shell's 50% working interest in the King Kong deepwater development project ENA and Manner are examining the potential proceeds that would be received based on the IPO timing. Mariner will overspend cash flow this year, with 2000 cap-ax (including capitalized G&A and interest estimated to be in the $85 - $90 MM range N WATCH - (Continued) Oconto Fails (Sub-Debt I Equity & IPC's) Balance Sheet * While a conceptual Agreement has been reached on a 'buy-back" of the IPO's associated with Oconto Falls for approximately $11 MM, the details and timing of that arrangement remain to be worked out The $5 MM of debt at the CLO / Merlin level will remain as the Company is precluded from paying that ofL prior to repayment of their senior debt ENA will not be paiticipeting in the financing of the Re-Box Paper facility (a greenfield linerboard project), buj will retain wanants to purchase 250 shares of Re-Box common stock. Pennanent of the Re-Box facility has not been secured ~ ci,o Trust #1) Sacramento Basin ElDloration Venture (50% W.L and a 40%N.R.1) JEDI U & Balance Sheet * (Formerly kiiowii as the Araerada Hess Exploration Venture) On July-28'. a new agreement was reached between Calpine and ENA I JEDI Il~ wherein the onginal Prospect Wells were to be replaced with new wells to be proposed by Calpine. The maximum commitment was reduced from $5 MM to $4 MM (with the understanding that ENA has already funded $1879 MM), and the commitment period was extended to Dec-31-2001. No cash calls have been made and are unlikely until 2001, based on the prospect area being located in a wet delta region that is only drilling accessible during the April - October period Venoco. Inc. (Pnvate Equity - Cumulative Convertible Preferred Stock) JEDI II & Balance Sheet * The Company has recently held what they feel are productive talks with the Bank of Montreal C'BMO"), regarding the implementation of a $100 MM borrowing base facility, designed to take the existing bank group out at per. Bank One is a likely co-lead on the facility, with one other bunk member probable. The ENA Commercial group believes there will be a downward adjustment to the $100 MM, based on the required preferred payments to ENAI JEDI II, not being fully captured in the BMO model However, the adjustment should not impact the payoff of the existing bank group. Time is of the essence on the re-financing as a bullet payment to the existing bank group of $11 MM is due on Oct-I'. An offer by a private E&P entity to purchase the whole Company has not been successful, based on a failure to raise the required capital. A total buy-out was contemplated in the $360 MM range, with a likely 80% - 20% debt I equity capital stnicture. The would-be purchaser obtained a commitment from Chase for $250 - $260 MM of debt, but has been warble to raise the necessary equity. Venoco was fair-valued up in excess of $36 MM diinng August and if the financing issues described above are favorably resolved, the asset wili move back to the Performing cate~osy on the next report -7 CONFIDENTIAL ECJ~~465O325 EXHO43-00036 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/25/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA WB Oil ComDanY (Private Equity) Balance Sheet No major updates since our last report. A recent well drilled by Coastal at High Island Block 85 was unsuccessfuL Coastal had signed a participation agreement with WB. whereby they paid S700K for a 775% working interest at High Island Block 85. Coastal was to pay an additional $300K, when drilling commenced on the initial test well. The ENA exits is sale of the interest ~ TROIIBLTh - Assets for winch the returns are considerably less than originally projected. Beau Canada (Common Stock & Warrants) JEDI & JEDI II (Gross 4's) * Beau Canada's sale process is nearing its completion and the Company believes that activity and interest shown have been good. Beau Cuiada announces that bids for the company should be submitted no later than Sept-25-2000. Beau had previously disclosed a notional transportation liability, or market value of transportation commitments, calculated at estimated July l~ pricing of approximately $48 MM~ including $3.2 MM for a specific commitment Beau has settled the specific (franafer to ENA CLO #1) S1Z.241 MM Balaham Eanloration Co. (Sub-debt, Common Stock & Warrants) JEI)T II & Balance Sheet - The ENA Commercial group has proposed a "buy-out" number to Brigham for the repurchase of our sub-debt, common stock and wamnts. The total "buy-out" number was roughly $5 MM more than Bngham officials had proposed to repurchase only the sub-debt. Brigham is working with their investment advisor, CIBC, regerding raising the additional fwids. The Company is currently in the process of raising $40 MM through a private equity placement The Company remains highly leveraged and access to the public capital markets is not possible, absent a re-capitalization of the balance sheet Due to being unfavorably hedged at $2.15 I MCF, the Company will generate little internal cash flow this year. For 2001, the Company has hedged approximately 11.5 MMCF / day (33% of estimated total production) at an average price of $2.35 I MCF. A response from Brigham on the "buy-out" is anticipated shortly C-Gsa (Pnvate Eqwty) JEDI I (Gross #'s) * Officers of the Company were in Houston the week of Sept-11". to discuss salazy and bonus issues. The ENA Commcroial team worked with Enron HR Compensation specialists to design a compensation staicture that is representative of similar Appalachian-based E&P companies. Operational and financial results YTD have exceeded plan for C-Gas. For the first eight months of the year actual EBITDA of S5.8 MM exceeded plan of $4.5 MM by 29%. Cash Flow of $4.5 MM exceeded plan of $3.2 MM by 42%. Drilling Success Y11) has been good with a 72% success rate through the first S months. Given thereasonablystr a onalresultsYTD,noimmediatesaleofthecom yis lanned Ecosas Coworution (Private Equity & Revolving Debt) Balance Sheet * Six companies have gone through the data room in Austin, with two public, large capitalization companies showing selective buy-side interest. One has recently signed a landfill-to-power deal with CONFIDENTIAL 6 FCThflOA~Wfl9l~ EXI-1043-00037 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/25/2900 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Waste Management Inc and the other one, a subsidiary of a major utility, has shown interest in gas rights held by Ecogas. A total sale of the Company continues to the preferred exit strategy foe ENA Commercial, but awareness persists that si~iifrcant interest will likely be shown only for certain assets - the power plants, the tax credits, the gas xighzs, etc. No official response his been received from the IRS on the Section 40 tax credit issue, but guidance from outside counsel, Bracewell & Patterson continues to be negative. ENA Senior Management marked the equity value on Ecogas to zero during themonthofAugust ~ TROI~LTh - continued EnSaCo Offshore (formerly NorAm) (Senior Term Loan) EnSerCo * A binding purchase and sale agreement for the rig has been entered into with formal closing and possession scheduled to occur no later than Sept-30'. The transaction as structured will take us out at a premium to par on our current carry value. A deficiency judgment rendered in Galveston County nstthe former owner tor wills to pursued. Heartland Steel (Senior Debt, Common Stock & Warrants) Balance Sheet * A meeting with the Heartland bank group was held in Terre Haute, Indiana on September 7'. A further response from the bank group (lead agents, PNC & Deutsche Bank). regarding extending forbearance is anticipated shortly. Cash flow and availability are thought to be sufficient to fund operations only through mid-November. Heartland officials have been meeting with two Restructuring groups out of New York City - the Blackstone Group as well as Houlihan & Loukey. Slower than expected plant commissioning and the lag time in production has resulted in a cumulative negative EBITDA of $31 MM, vs. an original plan of a negative $4.5 MM. The original model assumed 90'/, prime and 10% scrap sales To date, actual sales have not tracked the higher margin areas and are currently running 60/. prime and 40/, s - (Transfer to Condor) S 14 754 MM (Transfer to ENA CLO #1) S 15.000MM Huihes Rawli LLC (LLC Membership) JEDI I & Balance Sheet (Gross #'s) * The ENA Commercial group is waiting on a counter purchase offer from EPL, the operator of the Hughes Rawls properties. An offer in the $1.3- 31.5 MM range is e,~,ected, subject to values that will be associated with each well. Ha, as recognized operator of the properties under the Minerals Management Service, has not been subject to the same constraints as previous companies making offers. Other companies have made offers and then rescinded following due diligence. Dudley Hughes, the remaining principal of the LLC, will continue to attempt to market the Ice DrIllina (Term Loan with Warrants) EnSerCo * RESTRUCTURING COMPLETEIJ - No major updates since our last report A reconciliation of the amounts owed indicates CS1,057,S36 (US$719,616) outstanding on the original US$10 MM (gross) CONFIDENTIAL ECTeOO465O327 EXHO43-00038 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH L[ST-UPDATE AS OF 9/25/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA loan after the sale of assets placed in receivership. A negotiated settiement on the deficiency with the guarantors was unsuccessful and legal action is now underway. Industrial Holdinas "flifi" (Term Loan) EnSerCo The ENA Commercial team has met with die new CEO of Industrial Holdings and are more confident that a realistic turn-around of the Company is possible, validated by a positive recording of earnings for the Q-2-2000 period. The new management has given indication that they are looking to refinance all debt through their Bank group Qicaded by Comenca and Heller) by the end of January, 2001. If that effort is successful, the ENA / EnSerco loan wouid be paid off in its entirety. The ENA Legal group consistently recommended against filing litigation against the Company, due to our unsecured position TRO~LTh - continued Inland Resources (Cumulative Convertible Preferred) JEDI II RESTRUCTURING COMPLETED. The sale and merger of Inland with certain contributed assets of privately held Flying J (Salt Lake City~ UtaJ)~ is proceeding as planned with closing expected on or about Oct-Ist. Chase Bank and FleetBoston Financial are acting as lead agents on a $150 MM credit facility. As a condition precedent to the closing of the credit facility the Black Wax refinery is to receive $20 MM in upgrades over an IS-month period. Enron will maintain par on our $10 MM preferred stock, with our absolute common stork position (2.93 MM shares) maintained, but at a reduced ownership percentage. There are no restrictions on the common stock held by Enron. The ENA Commercial group believes die combination of Flying I and Inland enhances the collateral value of our preferred stock and facilitates secondary market opportimities I syndication to institutional investors ENA will retain the ri to match activit~, that the NEWCO would enter into. -.,~ r~4~ Kafus Industries, Ltd.. Canfibre of Riverulde, Inc.. (Debt & IPC's) Balance Sheet * The British Columbia Supreme Court granted a creditor's petition filed on Aug-14' and appointed PricewaterhouseCoopers Inc. as interim receiver. Repoits indicate that some constriction continues at the Company's medium density fiberboard ('MDF") plant located in Lackawanna~ NY and that production has resumed at the Riverside, California plant, averaging around 55% of capacity, with sales not keeping pace with that leveL At one point, the company had $2 MM of accumulated inventory at Riverside. Since that time about one-third of the inventory that was on hand has been sold. The Company will undertake futia'e production only to meet sales orders and not to build further inventory. Kafus common stock has resumed tiuding on the AIvIEX, recently quoted in the $0.20 cents (RIverside) rn&er Kafus) Oueen Sand Resources. Inc. (Equity - Preferred & Common) JEDI (Gross #'s) * RES7'RUCTUPJNG PARTIALLY COMPLETED. The Company held its annual meeting in Dallas on Monday. Sept-18' and all agenda items recommended for approval by Management were voted on positively. In brief, these included approval of the reverse 156:1 stock split, the pay-off of $75 MM of CONFIDENTIAL 8 ECTeOO485O328 EXHO43-00039 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9125/2000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA senior high yield notes for $49 MM and a name change to DEVX Energy. The Company now plans a secondary public common stock offering no later than Oct-3lst, whereby it expects to realize approxunately $74 MM an net proceeds. Apphcation of the proceeds will be an part, to purchase $75 MM of QSRI's $125 M1~vf 12.5% senior unsecured notes due 2008 l~r $49 MM and repay S13 MM currently outstanding under its credit facility Following the re-capitalization. JEDI will own proximately 229,391 shares of common stock, representing a ownership position in QSRI - **'-#~~:~i Basic Ener,, (Sierra Well Service) (Senior Secured Notes with Warrants and Preferred Stock) JEDI II The Company has retained Jefferies to assist with a private equity re-financing targeting qualified institutiorarl buyers. Jefferies received only 2 proposals out of 40 contacts, with First Reserve being the high bidder, offering $35 MM in ~h and aSS MM cash flow participation certificate. If accepted the $35 MM offer would take out the ENA CLO senior secured credit facility (approximately $24.41 MM outstanding), at par. The ENA CLO senior subordinated credit facility (approximately 528.1 MM outstanding), would be retired at arraijad $0.38 cents on the doUar. The cash flow participation certificate is for a five-year term uid is eapped at $1 MM per year and $5 MM in total. A default notice has been served to the Company, hued on the missed June-30' (and likely Sept-30') principal and interest but the note has not been accelerated (Transfer to ENA CLO Trust #1) S 52.550 MM ROUBLED - continued T Transcoastal Marine Services (TCMs") (Subordinated Debt with Warrants) JEDI II RESTRUCTURING PARTIALLY COMJ'LEThD. TCMS h.as filed a vohintary petition for Chapter 7 liquidation, requesting debtor in possession statris. The Bankruptcy Trustee and the fee arrangement have been agreed to. The law finn of Andrews and Kurth LLP is advising the CLO Trust in the bankruptcy proceeding The ENA Commercial group has been advised by outside legal counsel that 'some" value for ENA and the CLO Trust should flow from the bankruptcy liquidation (Transfer to ENA CLO Trust #1) $20.00 MM Loss No future cash flows projected and FMV of the asset has been written off. Residual recovery possible. Belco Oil & Gas (Warrants) LED! I (Gross N's) The Belco warrants are out of the money to the extent that it is not likely that any value wall be realized unless another transaction is consummated with Belco that would involve re-pricing the warrants, ~eat$275O(A~~thclos~af$9 3/16) The warrants expire Nov-25-2000. £r~irnu (Private Equity) Balance Sheet * MCN Energy (currently in the process of merging with the parent Company of Detroit Edison - DTE Energy), has filed a court action requesting a stay on all previously filed lawsuits between Crown Energy and MCN, citing language an the Operating Agreements that mandates arbitration prior to the initiation of legal proceedings. Crown has counter-filed, citing that the issues in question are not subject to arbitration and that the magnitude of their importance merit immediate court consideration. The Court has not yet rendered a decision on the request. Given the increased un-likelihood of Crown's ability to continue as a going concern, ENA Senior Management made the decision during August to mark the asset to zero on the Merchant Portfolio Report CONFIDENTIAL ECTeOO465O329 EXHO43-00040 RISK ASSESSMENT & CONTROL PORTFOLIO WATCH LIST-UPDATE AS OF 9/2512000 VALUES INDICATED ARE FOR ENRON NORTH AMERICA Lyco Energy (Private-Convertible Preferred & Common) JEDI I and Balance Sheet (Gross M's) RESTRUCTURING COMPLETED - FINAL REPORT. The $2.5 MM settlement payoff of the ENA preferred and common stock investment, which had been negotiated by the ENA Restmcturing Group, was rece -25". Nalwrnfi,al Strin Mill (NSNO -Thailand (Subordinated Notes w/Warinnts) Balance Sheet_ * RESTRUCTURING PARTIALLY COMPLETED Plaintiff attorneys representing claimants against McDonald & Company (a member of the onginal NMS Und~wntng group) were recently in Houston to "interview" ENA Commercial members. The ENA commercial group and internal cowisel have successfully obtained releases on two or the three lawsuits that were filed agauist the original widerwrnin~r that included ECT Securities CONFIDENTIAL 10 ECTeOO485O33O EXHO43-0004 1