================================================================= EOTT ENERGY BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) October 10, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- EOTT ENERGY BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtor's cases. New issues are prepared by Iris L. Sasing, Frauline Sinson-Abangan, and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of EOTT ENERGY BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO EOTT ENERGY BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF EOTT ENERGY [00002] CONSOLIDATED BALANCE SHEET AT JUNE 30, 2002 [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00004] EOTT ENERGY PARTNERS' CHAPTER 11 DATABASE [00005] EOTT ENERGY PARTNERS' 20-LARGEST UNSECURED CREDITORS [00006] EOTT ENERGY OPERATING'S 20-LARGEST UNSECURED CREDITORS [00007] EOTT ENERGY CANADA'S 20-LARGEST UNSECURED CREDITORS [00008] EOTT ENERGY PIPELINE'S 20-LARGEST UNSECURED CREDITORS [00009] EOTT ENERGY LIQUIDS' 20-LARGEST UNSECURED CREDITORS [00010] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES [00011] SUMMARY & OVERVIEW OF EOTT ENERGY'S CHAPTER 11 PLAN KEY DATE CALENDAR ----------------- 10/08/02 Voluntary Petition Date 10/23/02 Deadline for filing Schedules of Assets and Liabilities 10/23/02 Deadline for filing Statement of Financial Affairs 10/23/02 Deadline for filing Lists of Leases and Contracts 10/28/02 Deadline to provide Utilities with adequate assurance 11/07/02 Restructuring Pact requires Final DIP Facility approval 12/07/02 Deadline to make decisions about lease dispositions 01/06/03 Deadline to remove actions pursuant to F.R.B.P. 9027 01/10/03 Restructuring Pact requires Disclosure Stmt. approval 02/05/03 Expiration of Debtors' Exclusive Plan Proposal Period 02/28/03 Restructuring Pact requires Plan Voting to commence 03/17/03 Restructuring Pact requires Plan to be Confirmed 03/31/03 Restructuring Pact requires Plan to take effect 04/06/03 Expiration of Debtors' Exclusive Solicitation Period 10/07/04 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO EOTT ENERGY BANKRUPTCY NEWS ----------------------------------------------------------------- EOTT ENERGY BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of EOTT ENERGY BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving EOTT ENERGY BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990, starting with Federated Department Stores. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) EOTT ENERGY BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtor's cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of EOTT ENERGY BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF EOTT ENERGY ----------------------------------------------------------------- EOTT Energy Partners, L.P. 2000 W. Sam Houston Pkwy. S., Ste. 400 Houston, TX 77042 Telephone (713) 993-5200 Fax (713) 993-5821 http://www.eott.com/ EOTT Energy Partners, L.P. (NYSE:EOT), is one of the largest independent gatherers and marketers of crude oil in North America. EOTT gathers and markets roughly 330,000 barrels of crude oil each day from more than 30,000 wells in 19 states and Canadian provinces. EOTT's pipeline network extends some 8,000 miles and the Company has a fleet of more than 230 trucks to transport oil. EOTT also processes, stores, and transports MTBE, natural gas and other natural gas liquids products. In its gathering and marketing operations, EOTT purchases crude oil and raw materials at prevailing market prices, then enters into corresponding sale transactions involving physical deliveries to third party users, such as refiners or other trade partners, or sales of futures contracts on the NYMEX. EOTT also provides certain accounting and administrative services to some producers and operators. Through its common carrier pipeline systems, EOTT transports crude oil for its gathering and marketing operations and for third parties pursuant to published tariff rates regulated by the Federal Energy Regulatory Commission and state regulatory authorities. Additionally, EOTT owns and operates liquids processing, storage and transportation assets purchased in June 2001, which are located in the Texas Gulf Coast region, including a hydrocarbon processing complex at Morgan's Point, Texas and a natural gas liquids storage facility located in Mont Belvieu, Texas. Also, EOTT owns and operates a gas processing plant, a fractionation plant, and refrigerated propane storage and related truck and rail distribution facilities in Kern County, California. Who's Who in the EOTT Zoo EOTT Energy Partners, L.P. is a publicly held Delaware limited partnership with its principal place of business in Houston, Texas. The Partnership's units trade on the New York Stock Exchange. EOTT Energy Corp., a wholly owned subsidiary of Enron Corp. held a 1.98% general partnership interest in the Partnership as of December 31, 2001. Enron tells EOTT that an affiliate indirectly held entity controlled by Enron is the holder of record of approximately 18% of the Partnership's Common Units, 78% of the Partnership's Subordinated Units, and 37% of the total units outstanding. Koch Petroleum Group, L.P. holds 2 million of the Subordinated Units. Approximately 23,000 public holders hold 15.2 million of the Common Units. EOTT Energy Partners, L.P. principally operates through four limited partnerships: (1) EOTT Energy Operating Limited Partnership, in which the Partnership holds a 99.99% limited partner interest; (2) EOTT Energy Canada Limited Partnership, in which Operating holds a 99.99% limited partnership interest; (3) EOTT Energy Pipeline Limited Partnership, in which Operating holds a 99.99% limited partnership interest; and (4) EOTT Energy Liquids, L.P., in which Operating holds a 99.99% limited partnership interest; and EOTT Energy Partners, L.P., has two 100% owned subsidiaries: (A) EOTT Energy Finance Corp. and (B) EOTT Energy General Partner, LLC. ----------------------------------------------------------------- [00002] CONSOLIDATED BALANCE SHEET AT JUNE 30, 2002 ----------------------------------------------------------------- EOTT ENERGY PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS AT JUNE 30, 2002 (UNAUDITED) ASSETS Current Assets Cash and cash equivalents ............. $ 6,088,000 Trade and other receivables, net of allowance for doubtful accounts of $1,211,000 ............. 423,016,000 Inventories ........................... 24,022,000 Other ................................. 25,916,000 -------------- Total current assets .................. 479,042,000 -------------- Property, Plant & Equipment, at cost ...... 661,957,000 Less: Accumulated depreciation ........ 199,825,000 -------------- Net property, plant & equipment .... 462,132,000 -------------- Other Assets, net of amortization ......... 19,877,000 -------------- Total Assets .............................. $ 961,051,000 ============== LIABILITIES AND PARTNERS' CAPITAL Current Liabilities Trade accounts payable ................ $ 451,833,000 Accrued taxes payable ................. 11,340,000 Short-term borrowings ................. 22,100,000 Repurchase agreements ................. 75,000,000 Receivable financing .................. 50,000,000 Payable to Enron & affiliates, net .... 39,491,000 Performance collateral from Enron Corp. 15,829,000 Other ................................. 19,637,000 -------------- Total current liabilities .......... 685,230,000 -------------- Long-Term Liabilities 11% Senior notes ...................... 235,000,000 Other ................................. 7,875,000 -------------- Total long-term liabilities ........ 242,875,000 -------------- Commitments and Contingencies Additional Redeemable Partnership Interests 9,318,000 -------------- Partners' Capital Common Unitholders .................... (2,135,000) Subordinated Unitholders .............. 20,275,000 General Partner ....................... 5,488,000 -------------- Total Partners' Capital ............ 23,628,000 -------------- Total Liabilities and Partners' Capital .... $ 961,051,000 ============== ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- EOTT INITIATES RESTRUCTURING PLAN THROUGH PRE-NEGOTIATED CHAPTER 11 FILING * Company anticipates business as usual and rapid emergence from Chapter 11; * Plan will provide additional liquidity immediately, restructure debt, and formalize separation from Enron HOUSTON, Texas -- October 9, 2002 -- EOTT Energy Partners, L.P. (NYSE: EOT) today announced that it has commenced a restructuring plan through a voluntary, pre-negotiated Chapter 11 filing. The voluntary petition has the full support of EOTT's lenders, a majority of its bondholders and Enron. The petition was filed in the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. Under the plan, EOTT will significantly reduce its debt, restructure its finances, and formalize a complete legal separation from Enron. EOTT anticipates the restructuring will be completed in early 2003. As part of the plan, EOTT has received a commitment from its lenders to provide debtor-in-possession financing totaling $575 million. This financing represents an increase of approximately $100 million over the company's current working capital facility. The $400 million working capital facilities (including $325 million for letters of credit) have a six-month term with commitments for an additional 18 months post bankruptcy, subject to final covenant negotiations. The $175 million repurchase/accounts receivable financing has a six-month term with commitments for an additional six months post bankruptcy. Company officials said they believe this financing should be sufficient for EOTT to work toward achieving the level of business activities that existed before the Enron bankruptcy. The company emphasized that the pre-negotiated Chapter 11 filing is anticipated not to significantly impact day-to-day operations or affect its customers or employees. First-day motions have been filed with the Bankruptcy Court requesting that EOTT's crude oil and feedstock suppliers, critical vendors, and employee regular pay and benefits be protected, and paid in the ordinary course of business for both pre-petition and post- petition claims. The Enron settlement agreement that is part of the plan provides for a complete legal separation of EOTT from Enron upon confirmation of the plan of reorganization and a $1.25 million payment to Enron. All of Enron's claims against EOTT, which exceed $50.0 million, will be eliminated in exchange for a $6.2 million note to Enron. Additionally, EOTT has agreed it will no longer pursue claims against Enron Corp. or attempt to recover any amounts payable to EOTT. Enron's two members on the board of EOTT's general partner, EOTT Energy Corp., recently resigned. The company also disclosed that, as part of continuing restructuring efforts, Lawrence Clayton Jr., EOTT's Senior Vice President and Chief Financial Officer, resigned. The plan submitted by EOTT and subject to Bankruptcy Court approval also includes the cancellation of EOTT's outstanding $235 million of 11% senior unsecured notes in exchange for $100 million of 9% senior unsecured notes, plus the issuance of new equity units to holders of the unsecured notes. Upon confirmation of the plan, EOTT's current publicly traded units would be cancelled and current holders of these units would receive up to 10% of the new equity units, consisting of 3% of the newly issued units and warrants to purchase an additional 7% of the company's new equity units. The plan contemplates conversion of EOTT from a Master Limited Partnership to a Limited Liability Company structure. "Today's filing was made after a comprehensive and thorough review of our options," Dana R. Gibbs, EOTT President, said. "All of the parties involved agree that EOTT is a valuable business which clearly should be preserved and permitted to establish itself as an ongoing operation independent of its past ties to Enron. Our plan accomplishes all of these objectives." For current information on the plan of reorganization, please see updates at http://www.eott.com/ ----------------------------------------------------------------- [00004] EOTT ENERGY PARTNERS' CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor Entities Filing Separate Chapter 11 Petitions: Case No. Debtor Entity -------- ------------- 02-21730 EOTT Energy Partners, L.P. 02-21731 EOTT Energy Finance Corp. 02-21732 EOTT Energy General Partner LLC 02-21733 EOTT Energy Operating Limited Partnership 02-21734 EOTT Energy Canada Limited Partnership 02-21735 EOTT Energy Pipeline Limited Partnership 02-21736 EOTT Energy Liquids, L.P. Petition Date: October 8, 2002 Bankruptcy Court: United States Bankruptcy Court Southern District of Texas Corpus Christi Division 1133 N. Shoreline Blvd. Corpus Christi, TX 78401 Telephone (361) 888-3483 Bankruptcy Judge: The Honorable Richard S. Schmidt Debtors' Counsel: Robert D. Albergotti, Esq. George G. Young III, Esq. Kenric D. Kattner, Esq. Trey A. Monsour, Esq. Doug H. Edwards, Esq. Meredyth A. Purdy, Esq. Haynes and Boone, LLP 901 Main Street, Suit 3100 Dallas, TX 75202-9990 Telephone (214) 651-5613 Fax (214) 200-0350 Debtors' Special Restructuring Advisor: Dean E. Swick Alvarez & Marsal, Inc. 777 Walker Street, Suite 2470 Houston, Texas 77002 Telephone (713) 571-2400 Debtors' Crisis Management and Restructuring Consultant: Sandford R. Edlein Deborah Midanek Jack R. Stone Glass & Associates 8350 N. Central Expressway, Suite 1150 Dallas, Texas 75206 Debtors' Special Counsel for the Board's Restructuring Committee: Clifton R. Jessup, Jr., Esq. Bruce H. White, Esq. William L. Medford, Esq. Vickie L. Judd, Esq. Bryan L. Elwood, Esq. Patton Boggs LLP 2001 Ross Avenue, Suite 3000 Dallas, TX 75201 Debtors' Special Litigation Counsel: Paul Bohannon, Esq. Carrick Brooke-Davidson, Esq. Allison Comment, Esq. Sara Galley, Esq. Wade Jensen, Esq. Andrews & Kurth, LLP Waterway Plaza Two 10001 Woodlock Forest Drive, Suite 200 The Woodlands, Texas 77380 Debtors' Claims Agent: Logan and Company 546 Valley Road Upper Montclair, NJ 07043 Counsel to the Ad Hoc 11% Noteholders' Committee: Evelyn H. Bicry, Esq. Fulbright & Jaworski LLP 1301 McKinney, Suite 5100 Houston, TX 77010 Counsel to EOTT's Prepetition Lenders: Gary Lee, Esq. Karen Ostad, Esq. Lovells 900 Third Avenue New York, NY 10022 - and - Tina L. Brozman, Esq. Frederick F. Eisenbiegler, Esq. Bingham McCutchen LLP 399 Park Avenue New York, NY 10022 U.S. Trustee: Richard W. Simmons, United States Trustee Barbara Jue, Esq., Trial Attorney United States Trustee for Region VII 606 N. Carancahua Street, Suite 1107 Corpus Christi, TX 78476 Telephone (361) 888-3261 Fax (361) 888-3263 ----------------------------------------------------------------- [00005] EOTT ENERGY PARTNERS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ The Bank of New York 11% Senior Notes $247,925,000 101 Barclay Street New York, NY 10286 Enron Corporation Trade $55,013,319 ----------------------------------------------------------------- [00006] EOTT ENERGY OPERATING'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ Teppco Crude Oil, L.P. Trade $14,840,504 210 Park Avenue, Suite 1600 Oklahoma City, OK 73102 Continental Resources, Inc. Trade $13,006,404 P.O. Box 1032 Enid, OK 73702 Merit Energy Company Trade $11,058,337 P.O. Box 843727 Dallas, TX 75284 Devon Energy Production Trade $10,122,857 Company, L.P. P.O. Box 843559 Dallas, TX 75284 Tesoro Refining & Marketing Trade $8,324,975 1225 17th Street, 18th Floor Denver, CO 80202 Eaglwing Trading, Inc. Trade $7,447,387 Suite 205 7702 East 91st Street Tulsa, OK 74133 Equiva Trading Company Trade $7,093,108 P.O. Box 7792 2255 N. Ontario Street Burbank, CA 91510 Burlington Resources Trading Trade $6,700,959 P.O. Box 840656 Dallas, TX 75284 NCRA Trade $6,564,835 P.O. Box 1404 McPherson, KS 67460 Plains Marketing & Trade $6,449,191 Transportation, Inc. Attn: Run Tickets 333 Clay Street, Suite 2900 Houston, TX 77002 Central Crude Corp. Trade $5,718,276 P.O. Box 21110 Wichita, KS 67208 Chesapeake Energy Marketing Inc. Trade $5,423,500 P.O. Box 99688 Oklahoma City, OK 73199 Apache Corporation Trade $5,308,714 P.O. Box 840133 Dallas, TX 75284 Marathon Oil Company Trade $4,913,121 Dept. 0882 P.O. Box 120001 Dallas, TX 75312 RME Petroleum Company Trade $4,906,699 P.O. Box 730875 Dallas, TX 75373 COHO Resources, Inc. Trade $4,888,944 Suite 860 14785 Preston Road Dallas, TX 75240 El Paso Merchant Energy- Trade $4,795,898 Petroleum Company P.O. Box 2511 Houston, TX 77252 Amoco Production Company Trade $4,573,805 P.O. Box 277897 Atlanta, GA 30384 Occidental Permian Ltd. Trade $4,013,307 5 Greenway Plaza, 15th Floor Houston, TX 77046 Occidental Permian Ltd. Trade $4,013,307 Attn: OEMI-15 P.O. Box 100725 Atlanta, GA 30384 ----------------------------------------------------------------- [00007] EOTT ENERGY CANADA'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ Tidal Energy Marketing Inc. Trade $867,263 2000 Canterra Tower 400 3rd Avenue S.W. Calgary, AB T2P 5A6 Centrica Canada Limited Trade $400,171 1000 111 5th Avenue S.W. Calgary, AB T2P 3Y6 Enerplus Resources Corporation Trade $346,899 WesternCanadian Place, Ste. 3000 7th Avenue S.W. Calgary, AB T2P 2Z1 Athena Resources Ltd. Trade $285,541 2050, 717 7th Ave. S.W. Calgary, AB T2P 0Z3 Montana Refining Company Trade $264,538 Suite 1600 100 Crescent Court Dallas, TX 75201 Petrobank Energy and Resources Trade $240,247 2200, 400 3rd Avenue S.W. Calgary, AB T2P 4H2 Encana Corporation Trade $239,304 P.O. Box 2850 Calgary, AB T2P 2S5 Tundra Oil and Gas Ltd. Trade $201,560 1111 One Lombard Place Winnipeg, Manitoba R3B 0X4 Purcell Energy Ltd. Trade $177,834 950, 250 6th Ave. S.W. Calgary, AB T2P 3H7 Talisman Energy Canada Trade $164,146 Suite 3400 888 3rd Street S.W. Calgary, AB T2P 5C5 Nexen Marketing Trade $155,100 2900, 801 7th Avenue S.W. Calgary, AB T2P 3P7 Tiverton Petroleums Ltd. Trade $131,343 710, 635 8th Avenue S.W. Calgary, AB T2P 3M3 Coastal Energy (A Partnership) Trade $109,157 400, 505 3rd Street S.W. Calgary, AB T2P 3E6 Kiwi Resources Ltd. Trade $106,431 P.O. Box 908 Virden, Manitoba T2P 4H2 Crispin Energy Inc. Trade $97,274 1720, 510 5 St. S.W. Calgary, AB T2P 3S2 Gentry Resources Trade $88,801 (Saskatchewan), Ltd. 2500, 101 6th Ave. S.W. Calgary, AB T2P 3P4 Shiningbank Energy Ltd. Trade $72,312 Suite 1310 111 5th Avenue S.W. Calgary, AB T2P 3Y6 Sogar Redources Ltd. (D) Trade $63,570 320 McFarlane Tower 700 4th Avenue S.W. Calgary, AB T2P 3J4 Sogar (B) Joint Venture Trade $53,204 320 McFarlane Tower 700 4th Avenue S.W. Calgary, AB T2P 3J4 Calpine Canada Resources Ltd. Trade $50,723 1800, 421 7th Ave. S.W. Calgary, AB T2P 4K9 ----------------------------------------------------------------- [00008] EOTT ENERGY PIPELINE'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ Big Warrior Trade $2,200,000 57 Arena Drive P.O. Box 181 Cleveland, AL 35049 Danny Wright Dozer and [sic.] Trade $767,295 4200 N. Broadway Hinton, OK 73047 Environmental Technology Trade $725,395 8080 North Central Expwy. #1390 Dallas, TX 75206 Andrews & Kurth, Trade $180,494 Mayor, Day, [sic.] P.O. Box 201785 Houston, TX 77216 Plains Marketing LP Trade $158,194 P.O. Box 4648 Houston, TX 77002 Environmental Plus, Inc. Trade $138,587 P.O. Box 969 Use Remit 001 Eunice, NM 88231 B&H Maintenance & [sic.] Trade $84,727 P.O. Box 970 Eunice, NM 88231 Greg Tucker Construction Co. Trade $82,708 P.O. Box 442 Lindsay, OK 73052 Arguijo Oilfield Services, Inc. Trade $73,261 P.O. Box 886 Kermit, TX 79745 MLM Services, LLC Trade $61,217 P.O. Box 52608 Tulsa, OK 74152 Big State X-Ray, Inc. Trade $45,790 P.O. Box 520 Chickasha, OK 73023 AT&T Trade $43,131 Account No. 1000 149 9267 P.O. Box 78214 Phoenix, AZ 85062 Pratt Well Service Inc. Trade $41,795 P.O. Box 847 Pratt, KS 67124 Chaparral Service, Inc. Trade $41,234 P.O. Drawer 1769 Eunice, NM 88231 Endura Products Corp. Trade $38,443 P.O. Box 3394 Midland, TX 79702 Mills Construction Trade $36,786 P.O. Box 989 Cushing, OK 74023 R.L. Guderian dba [sic.] Trade $33,370 15604 Bethel Road Shawnee, OK 74801 H&H Valve Services, Inc. Trade $30,793 P.O. Box 69854 Odessa, TX 79769 N Diamond Ranch Trade $25,000 11700 North Grimes Hobbs, NM 88242 Key Energy Services, Inc. Trade $24,426 Mid Continent Division P.O. Box 676756 Dallas, TX 75267 ----------------------------------------------------------------- [00009] EOTT ENERGY LIQUIDS' 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ BP Products North America Trade $2,561,927 501 Westlake Park Boulevard Houston, TX 77079 Duke Energy Field Services Trade $1,677,405 P.O. Box 5493 Denver, CO 80217 Southern Chemicals Corp. Trade $1,475,000 3303 FM 1960 West, Suite 100 Houston, TX 77068 Houston Pipe Line Trade $520,000 1201 Louisiana, 11th Floor Houston, TX 77002 JE Merit Constructors, Inc. Trade $78,511 P.O. Box 840381 Dallas, TX 75284 Shaw Constructors, Inc. Trade $61,729 P.O. Box 972343 Dallas, TX 75397 Hydrochem Industrial Trade $54,597 P.O. Box 844876 Dallas, TX 75284 Conoco Trade $50,000 P.O. Box 203192 Houston, TX 77216 Mobley Industrial Painters Inc. Trade $45,567 P.O. Box 596 Deer Park, TX 77536 Diversified Plant Services Trade $37,784 14004 Hwy. 288-B Angleton, TX 77515 Reliant Energy Solutions Trade $34,785 Acct. 361 166-2 P.O. Box 3765 Houston, TX 77253 Praxair, Inc. Trade $31,890 P.O. Box 840193 Dallas, TX 75284 Industrial Catalyst Services Trade $23,000 P.O. Box 201143 Dallas, TX 75320 Tech 2000 Services Trade $22,789 220 White Plains Road Suite 530 Tarrytown, NY 10591 Brown & Root Trade $18,094 P.O. Box 951099 Dallas, TX 75395 Jacobs Engineering Group Inc. Trade $16,701 Dept. 8862 Los Angeles, CA 90088 GE Betz Trade $15,138 P.O. Box 846046 Dallas, TX 75284 Philip Reclamation Services Trade $11,603 Department 2 P.O. Box 3069 Houston, TX 77253 Puffer-Sweiven, Inc. Trade $10,878 P.O. Box 200775 Houston, TX 77216 Pinkerton Trade $10,503 P.O. Box 2111 Carol Stream, IL 60132 ----------------------------------------------------------------- [00010] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES ----------------------------------------------------------------- The United States Trustee for Region VII will contact each of EOTT's largest unsecured creditors at the addresses provided by the Debtors to invite them to an organizational meeting for the purpose of forming one or more official committees of unsecured creditors. Official creditors' committees, organized by the U.S. Trustee under 11 U.S.C. Sec. 1102, ordinarily consist of the seven largest creditors who are willing to serve on a committee. Those committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the chapter 11 cases to a liquidation proceeding. Typically, the U.S. Trustee convenes the organizational meeting within a week to 10 days following the commencement of a chapter 11 case. Creditors who do not send a representative to the organizational meeting typically are not appointed. Members of active prepetition noteholder and other ad hoc committees are frequently appointed to fill seats on official committees. Contact the U.S. Trustee's office at (361) 888-3261 to ascertain the time, date and place of this meeting. Immediately following the U.S. Trustee's determinations about how many official committees will be appointed and who will be appointed to each committee, the newly formed committees convene their initial meeting. The first order of business is to listen to the U.S. Trustee explain the powers and duties of the committee as a whole and members' individual responsibilities. The Committee will generally elect a chairman. Thereafter, the Committee typically conducts beauty pageants to select their legal and financial advisors. ----------------------------------------------------------------- [00011] SUMMARY & OVERVIEW OF EOTT ENERGY'S CHAPTER 11 PLAN ----------------------------------------------------------------- "It is my belief and expectation that EOTT Energy Partners, LP, and its related entities, will successfully reorganize through the confirmation of [its] proposed Plan . . . ," Dana R. Gibbs, President and Chief Executive Officer of EOTT Energy Corp., as general partner for EOTT Energy Partners, L. P., tells the U.S. Bankruptcy Court for the Southern District of Texas. EOTT Energy Partners, L.P., and its debtor-affiliates present a Plan of Reorganization to the Bankruptcy Court proposing a compromise of the Company's debts and substantial dilution of all equity interests. The Plan comes to the Bankruptcy Court supported by holders of more than 56% of the 11% Notes: Noteholder Principal Amount ---------- ---------------- Lehman Brothers Inc. $41,535,000 Dreyfus High Yield Strategies Fund 6,746,000 Dreyfus Premier Fixed Income Funds 775,000 The Dreyfus/Laurel Funds Trust 5,925,000 Dreyfus Fixed Income Securities 555,000 Dreyfus Variable Investment Fund 50,000 The Northwestern Mutual Life Insurance Company 15,750,000 High Yield Portfolio 21,125,000 Total Return Portfolio 300,000 AXP Variable Portfolio 500,000 Income Portfolio 100,000 Managed Portfolio 100,000 AXP Variable Portfolio -- Extra Income Fund 5,760,000 Calhoun CBO Limited (by American Express) 1,000,000 Isles CBO Limited (by American Express) 1,000,000 American Express Retirement Plan-High Yield 150,000 Cedar CBO Limited (by American Express) 1,000,000 Centennial CBO Limited (by American Express) 1,000,000 Centurion CDO IV, Limited 1,500,000 Centurion CDO I, Limited 1,000,000 Centurion CDO II, Limited 660,000 Centurion CDO III, Limited 880,000 Centurion CDO III, Limited -- Preferred Shares 500,000 Clarion CBO, Limited (by American Express) 1,500,000 Farallon Capital Partners, L.P. 5,010,000 Farallon Capital Institution Partners, L.P. 6,140,000 Farallon Capital Institution Partners II, L.P. 780,000 Farallon Capital Institution Partners III, L.P. 740,000 Tinicum Partners, L.P. (by Farallon) 250,000 Prudential High Yield Fund, Inc. 3,605,000 The High Yield Income Fund, Inc. (Prudential) 85,000 Strategic Partners Moderate Growth (Prudential) 60,000 Strategic Partners Conservative (Prudential) 40,000 The Prudential Series Fund, Inc., High Yield 1,580,000 Pruamerica Worldwide Investors Portfolio 240,000 The PII High Yield Fund (Prudential) 190,000 Prudential Property & Casualty Insurance Company 270,000 Pruco Life Insurance Company 580,000 Pruco Life Insurance Company of New Jersey 75,000 Dryden High Yield CDO 2000-1 (Prudential) 3,000,000 The Prudential Insurance Company of America 13,335,000 and with these noteholders' agreement to vote to accept the plan under the terms of a Restructuring Agreement dated as of October 7, 2002. The Noteholders' continued support of the Plan requires: * no material modification to EOTT's Plan; * final approval of the DIP Financing Facility by November 7, 2002; * approval of a Disclosure Statement explaining the Plan by January 10, 2003; * the company must commence solicitation of votes to accept the Plan by February 28, 2003; * the Plan must be confirmed on or before March 17, 2003; and * the transactions described in the Plan must close on or before March 31, 2003. Looking forward, the company projects it'll generate positive EBIDA from year-to-year and show profits by the end of 2004: EOTT Energy Partners, L.P. Projected Profit & Loss Statements [Transcribed from Best Available Copy] For the 12-Month Periods Ending -------------------------------------- 12/31/2001 12/31/2003 12/31/2004 ------------ ------------ ------------ Gross Margins: Marketing & Pipeline $154,850,332 $157,245,659 $194,245,225 Liquids 52,438,873 51,364,480 52,864,480 West Coast 14,872,050 14,927,883 14,927,883 Other 3,680,000 0 0 ------------ ------------ ------------ Projected Gross Margins $225,841,256 $223,536,022 $262,037,589 Operating Expenses 192,479,921 180,492,661 186,452,874 Depreciation & Amort. 38,088,206 28,442,241 28,319,471 Interest & Other (47,734,006) (40,188,494) (38,630,532) Non-Recurring Expenses (7,617,790) (1,570,000) 0 ------------ ------------ ------------ Projected Net Income ($60,078,665)($27,155,355) $8,634,712 ============ ============ ============ Projected EBIDA $33,361,335 $43,045,361 $75,584,714 ============ ============ ============ The Plan groups all claims against the Debtors into various classes and outlines how those classes of claims will be treated: Class Description Estimate Claim Treatment ----- ----------- -------- --------------- N/A Administrative Priority $___________ Paid in Full Claims 1 Priority Unsecured $___________ Paid in Full Tax Claims 2 Secured Tax Claims $___________ Each holder of a Class 2 Claim will receive 100% in Cash on the Effective Date or receive quarterly installments over 6 years with 6% interest as permitted under the Bankruptcy Code 3 Secured Claims, $___________ At the Debtors' including: option: (a) return of the collateral; 3.1 Enron's Secured Claim (b) payment in full 3.2 Trade Partner Secured Claims in Cash; or (c) 3.3 M&M Lienholder Claims repayment over 6 3.4 Other Secured Claims years in quarterly installments. 4 Senior Note Claims $247,925,000 Each Noteholder will receive: (a) a pro rata share of $100 million of New 9% Senior Notes; and (b) a pro rata share of New Equity Units 5.1 Convenience Class Claims $___________ Claimholders may elect to receive a pro rata share of a $1,500,000 pot on account of any claim for less than $10,000 or voluntarily reduced to $10,000. 5.2 General Unsecured Claims $___________ A pro rata share of a Master Creditor Note in the amount of total claims in Class 5.2 multiplied by the distribution percentage received by Class 4, plus 6% interest per year, with the Master Creditor Note payable by Reorganized EOTT in 14 half-year installments over the next 7 years. 6 Equity Interests N/A All equity interests (other than Intercompany Equity Interests) remain intact under the Plan, subject to substantial dilution on the Effective Date and subject to further dilution after the Effective Date in accordance with the Plan. The Plan contemplates a substantive consolidation of the Debtors' estates, rolling all of the individual debtors' assets and liabilities into one pot. This substantive consolidation of the Debtors' estates eliminates all Intercompany Claims. *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt -------------------------------------------------------------------------