EMAIL DETAILS

Thanks, Abel. I think this is similar to the impression that I am getting
as well. I do think that certainly some success on the Houston deal will
help us on getting the success fee for Amtrak more easily. That is why I
think the most important part of what we are doing on Houston should be to
define success for them. They want the re-bid canceled which may be
difficult given the public posture being taken by DOT. We are trying to
make it clear that getting a hearing from Rogoff is already a victory and
that they are far behind their competitors as it relates to relationships in
DC that coming out of this with their reputation in tact should also be a
goal and considered a success. We also have to do this in a way that
doesn't make it look like we are being critical of the work they have done
so far in the U.S. They have come a long way very quickly, they just are a
victim of their own success in some ways.

On Wed, Sep 15, 2010 at 6:58 AM, Abel Navarro Homet <
abel@transatlanticeg.com> wrote:

> Hello all
>
> Yesterday as we planned, I had a conversation with Virginia that involved
> first, our full commitment from all of us to help them to solve their
> Houston problem and second, the paperwork and payment situation between
> Transatlantic/ Rosemont & Seneca and CAF
>
> Let me go a little bit extensive in how the conversation went in terms of
> the fluency so that you guys can capture and consequently make your own
> opinions.
>
> First thing she told me was that they were all going through a very
> difficult situation these past days working 16 hours a day because of their
> Houston problem. It was my understanding that they are very much aware of
> the precarius situation that Hunter and Eric exposed in the last emails (
> Literally told me that if the Houston problem doesn´t get solved then CAF
> USA would be dead) . She appreciated very much your presence in the friday´s
> meeting and tried to call both of you guys to say thanks. I took advange of
> this and told her that if for any reason she could´t reach you that she was
> more than welcome to contact me at any time in order to transmit any kind of
> information. She appreciated very much . In this first stage I also
> mentioned her that all the team was very much involved in the Houston case
> and paralell to that we were already working hard to find the best
> candidates to create the best possible consortium for the Florida HSR
> project together with them, we both agreed that the Houston problem could
> not interfere with the whole US scope of the company. Again, she appreciated
> very much the way we were addresing everything.
>
> Now, the second stage of the conversation was obviously focused in all the
> payments and agreements that we have established in the past. It seems that
> she wasn´t very familiar with the agreement closed with Andrés and Jesús
> back in June, so I explained her in not much detail the retainer part of the
> agreement and the incentive fee. Saying this, she reiterated me her
> disposition to help us to solve all payments procedures with the accounting
> department in Spain. What she told me is that normally the CAF spanish
> branch has a 90 days payment policy to the suppliers and she cited me
> several situation in which she had to call personally to the department to
> make payments to certain numbers of american suppliers as the payment had
> been delayed way to long in time. I recalled her that the spanish payments
> procedures differ very much from the one in America and is something that
> needs to be change for the future, she completetely agreed with me. Then, we
> continued the conversation telling me that in order to achieve all these as
> soon as posible, the fact of solving the Houston problem would accelerate
> the process ( She reiterated this twice ). Is then when again I took
> advantage of this to say that the Houston and Florida work, nothing had to
> do with the Amtrak project in which we still had a lot of work to do in that
> field, I anticipated to Virginia that we were also expecting to have a
> meeting with them to define the new conditions for Houston and Florida. Just
> to let you know she told me twice that the Houston situation has to be
> solved from the top... and that by friday everything would be known
>
> She suggested me to talk again next monday to continue with the
> conversation. She assured me that by then she had something in mind that
> would help us to solve the situation
>
> Now, what do I read from all this conversation and what steps would I
> suggest :
>
> 1) They are taking advantage of the Houston situation to postpone payments
> pressuring us to do our best best best. ( I am completely sure that these
> come from Jesús, Andrés or members of the organization that feel that we
> didn´t do enough in the Amtrak project ).
>
> 2) Virginia and Tomar feel very comfortable with us and they definitively
> need us, so they will be our great supporter
>
> 3) Virginia does not know the details of the agreement that we made with
> Andrés and Jesus so that give us the opportunity to send her everything
> written by email and establish with her an understanding of the next steps
> in order to clarify all the situation
>
> 4) When I talk with Virginia again on monday, I would tell her that we are
> going to be sending her by email the conditions for the Amtrak agreement
> just to let her know and the next steps related to the Houston and Florida
> project working agreements
>
> 5) I have no doubt that we will get paid , however I think it is going to
> take longer than I first expected. That is the reason I think we should be
> sending her an email on monday and then following this arrange a conference
> call with all of us together with Virginia and Tomar to discuss it
>
> Let me know your thoughts. Best
>
>
> Abel
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--
Eric D. Schwerin
Rosemont Seneca Partners
(202) 333-1880
eschwerin@rosemontseneca.co