MGSC14H3 Study Guide - Unsecured Debt, Jeffrey Skilling, Revolving Credit
Document Summary
240 million unsecured loan from barclays which enron would guarantee. (this was. 132 million advance from jedi to chewco under revolving credit agreement (normal. Continuously invest at least 3% of the spe"s assets. Exercise control and assume risk of the spe. Main topic: hedging against its own losses, lying to the public, auditing scam. Limited liability partnership created in nov 1997 to buy calpers" ownership in jedi without needing to have enron report losses from jedi on its financial statements. Enron wanted to keep jedi afloat but needed an outside partner to have at least a 3% stake in the company or it would be consolidated. Chewco was a special purpose entity (spe) and would need to meet 3 criteria to keep jedi in nonconsolidation. Fastow wanted to be appointed manager but enron"s legal team advised against it. Kopper who worked for fastow but this fact was only known to jeffrey skilling on the bod was appointed manager of chewco.
