Ben Gilbert: belief

Transcript context

…Here's what happens. They strike a super fast 11th hour deal to save Enron, prevent it from filing from bankruptcy. Dynegy's going to acquire Enron for $8 billion, an all stock deal, no cash. But Enron, of course, needs more cash to survive until the deal can close, and Dynegy can complete its due diligence. Dynegy lends $1.5 billion to Enron in cash to help Enron through their liquidity crisis. The loan is secured by Enron's core original pipeline assets. Back to the InterNorth days, those valuable actual operating pipelines, the only thing that is actually tangible in the company. I think JP Morgan comes into the deal, too. JP Morgan mandates that, but they also mandate that all future Enron investment banking business will be handled by JP Morgan over the next 18 months. There's an internal memo at JP Morgan that these guys are going to need a lot of investment banking help, and we're going to mandate that we get those fees. The deal gets signed. It gets announced to the market on November 9th, 2001. In the intervening period, while all the documents are being prepared, and Dynegy is doing its due diligence on the deal, it comes out. Remember Chewco that we were talking about a while back, the Chewbacca, the Andy Fastow and Michael Kopper total front to buy up the toxic waste that they thought they'd sealed up? Right at this time, Andersen, who's now fearing for its own skin, they're looking back through all this because everything's going on and they're like, they discover about Kopper, Dodson, and this crazy domestic partnership front. They're not married, so technically, Dodson isn't a spouse. They say, this is no good. We can't count that, it's not independent. We're going to have to restate everything, all the assets associated with Chewco and Jedi.…

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