The Bankruptcy Court has approved our sale of the IM Project to AEP.
The C= ourt's formal order will be entered sometime Friday morning.
With this app= roval, we expect to close the sale either Friday or Saturday.
Approval was=  conditioned upon our agreement to the following procedures with respect to=  the net sale proceeds (approximately $108mm): =20  =09-=09$25mm will be returned to Enron (repayment of the post-petition work= ing capital loans made to EW);=20 =09-=09$10mm will be retained by EW for working capital to use over the nex= t 2 weeks;=20 =09-=09$78mm (the remaining balance) will be set aside in a restricted acco= unt of EW, pending approval by the creditor's committee of the use of those=  funds for payment of existing obligations and for ongoing working capital = by EW.
=20  We have until 15 January to obtain creditors' committee approval for the us= e of the remaining balance, at which time if no approval is obtained, we ca= n ask the BK Court to rule on the matter.
Obtaining creditors' committee a= pproval will require that we (a) demonstrate that the continued operation o= f EW as a going concern is in the bankruptcy estate's best interest (becaus= e it will enhance or at least maintain the value of EW for sale) - this dem= onstration will need to be made by Enron (Mark) and CSFB (Matt), and will n= eed to include an overview of EW's value on sale, including arguments why t= here is significant value in the EW - Americas business unit notwithstandin= g the short-term issues facing the US business, and an update on the sale p= rocess; and (b) demonstrate the legitimacy of EW's current obligations and = future working capital needs - this will need to be done by Umanoff and Wes= tbeld (we initially projected that we would need approximately $54mm of the=  $78mm through the end of Q1, a likely closing date for sale of EW; Mike an= d his team will be scrubbing these numbers over the next week).
We are tar= geting early in the week of Jan 7 to make our case to the creditors' commit= tee, although no firm date has been set.
One final note - a representative of GE attended the BK court hearing and i= s aware that our request to use the remaining balance to pay our past due o= bligations (including $9mm owing to GE) was denied pending implementation o= f the above procedure.
We can expect continued pressure from GE.
Call me with any questions.

Indian Mesa Sale - Bankruptcy Court Approval
The Bankruptcy Court has approved our sale of the IM Project to AEP.
The C= ourt's formal order will be entered sometime Friday morning.
With this app= roval, we expect to close the sale either Friday or Saturday.
Approval was= conditioned upon our agreement to the following procedures with respect to= the net sale proceeds (approximately <CUR>000mm): =<NUMBER> =<NUMBER>-=<NUMBER><CUR>00mm will be returned to <COMPANY> (repayment of the post-petition work= ing capital loans made to EW);=<NUMBER> =<NUMBER>-=<NUMBER><CUR>00mm will be retained by EW for working capital to use over the nex= t <NUMBER> weeks;=<NUMBER> =<NUMBER>-=<NUMBER><CUR>00mm (the remaining balance) will be set aside in a restricted acco= unt of EW, pending approval by the creditor's committee of the use of those= funds for payment of existing obligations and for ongoing working capital = by EW.
=<NUMBER> We have until <NUMBER> January to obtain creditors' committee approval for the us= e of the remaining balance, at which time if no approval is obtained, we ca= n ask the BK Court to rule on the matter.
Obtaining creditors' committee a= pproval will require that we (a) demonstrate that the continued operation o= f EW as a going concern is in the bankruptcy estate's best interest (becaus= e it will enhance or at least maintain the value of EW for sale) - this dem= onstration will need to be made by <COMPANY> (Mark) and CSFB (Matt), and will n= eed to include an overview of EW's value on sale, including arguments why t= here is significant value in the EW - Americas business unit notwithstandin= g the short-term issues facing the US business, and an update on the sale p= rocess; and (b) demonstrate the legitimacy of EW's current obligations and = future working capital needs - this will need to be done by Umanoff and Wes= tbeld (we initially projected that we would need approximately <CUR>00mm of the= <CUR>00mm through the end of Q0, a likely closing date for sale of EW; Mike an= d his team will be scrubbing these numbers over the next week).
We are tar= geting early in the week of Jan <NUMBER> to make our case to the creditors' commit= tee, although no firm date has been set.
One final note - a representative of GE attended the BK court hearing and i= s aware that our request to use the remaining balance to pay our past due o= bligations (including <CUR>0mm owing to GE) was denied pending implementation o= f the above procedure.
We can expect continued pressure from GE.
Call me with any questions.
becaus enhance working capital needs use remaining balance including arguments q0 likely closing early week jan creditors commit tee nex number court approved sale project aep ourt