Stephen: iv) Enron books the $100 mn as revenue today tho it may have
made various
promises to the bank and to future investors in the SPV to make them
whole
for losses (through warrants or issuance of additional ENE stock, again
without full disclosure to current public shareholders).
v) the SPV
PROTECTED]
> Subject: [PEN-L:22248] Re: Re: Enron SPV's and debt
>
> Fred, the Portnoy testimony that Steve mentioned is excellent is laying
> out the mechanism.
>
> On Sat, Feb 02, 2002 at 09:04:12PM -0500, Fred B. Moseley wrote:
> >
> > Steve, thanks for
Fred, the Portnoy testimony that Steve mentioned is excellent is laying
out the mechanism.
On Sat, Feb 02, 2002 at 09:04:12PM -0500, Fred B. Moseley wrote:
>
> Steve, thanks for your very clear and helpful description of the typical
> SPV. Better than anything I have read yet.
>
> My main ques
Steve, thanks for your very clear and helpful description of the typical
SPV. Better than anything I have read yet.
My main question at the moment has to do with step (ii), the money the SPV
borrows. This debt is off the balance sheet of the Parent, although the
Parent still has contingent lia
I probably do not have a satisfactory answer to Fred and Rakesh's questions.
Here is what I do know. The typical SPV (special purpose vehicle), and this
applies to many of the Enron vehicles, are:
i) capitalized initially by a small cash or security infusion by the Parent
together with a minorit
