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ENFORCE29365
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Last modified
8/24/2016 7:36:24 PM
Creation date
11/21/2007 12:14:46 PM
Metadata
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Template:
DRMS Permit Index
Permit No
C1984067
IBM Index Class Name
Enforcement
Doc Date
3/2/1988
Doc Name
AMENDED DISCLOSURE STATEMENT TO ACCOMPANY DEBTORS THIRD AMENDED PLAN OF REORGANIZATION
Violation No.
CV0000000
Media Type
D
Archive
No
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(e) Article V - Executory Contracts and <br />Leases. Although the Debtor knows of no executory con- <br />tracts that it has not treated during the course of this <br />proceeding, it has provided for the assumption of all <br />unexpired leases and executory contracts not specifically <br />rejected. Executory contracts are generally contracts upon <br />which performance remains due to some extent by both sides. <br />A note is not usually treated as an executory contract if <br />the only performance that remains is repayment. PRI would <br />specifically reject, upon confirmation of the Plan, the <br />Melco, Burnett and Bank Agreements. <br />(f) Article vI - Means of Execution of the <br />Plan. The Plan under Article VI provides a little back- <br />ground involving Debtor's relationship with DCC. The Plan <br />discusses DCC's sublease agreement with Arness-McGriffin <br />Coal Company ("AMC") covering certain leases, subleases, <br />etc., which make up the property to be mined. Article VI <br />also discusses DCC's joint venture agreement with Peerless <br />whereby DCC agreed to put the mined properties into produc- <br />tion. The Joint venture Agreement also provided Peerless <br />with an option to acquire an undivided 50 percent in the <br />properties. <br />Also discussed is DCC's loan of $445,000 to Peerless <br />with which Peerless purchased its interest in the sublease. <br />Article VI discusses DCC's agreement to contribute 51.50 per <br />ton of coal to set up a fund to pay creditors. This article <br />also discusses DCC's agreement to relinquish its claim of <br />5445,000 for Peerless' release of any rights, title or <br />claims Peerless has to be subleased properties under the <br />joint venture agreement. Article VI further discusses DCC's <br />plans to mine 10,000 tons of coal per month within one year <br />of its start up date, and 20,000 tons per month within two <br />years. <br />(g) Article VII - General Provisions. Article <br />VII is basically a housekeeping provision providing that all <br />of Debtor's property is dealt with under the Plan and that <br />Debtor has the right to borrow funds in the event Debtors <br />incur obligations in the ordinary course of business. <br />Additionally, Article VII allows the Debtor to make immate- <br />rial modifications and amendments to the Plan as Debtor <br />deems necessary to implement the Plan. Also, Debtor <br />reserves the right to modify the Plan prior to confirmation <br />upon such notice as the Bankruptcy Court may require. <br />Finally, Article VII allows Debtor to begin or continue any <br />adversary proceeding permitted under the Code. <br />(h) Article VIII - Retention of Jurisdiction. <br />Article VIII provides that the Bankruptcy Court shall retain <br />jurisdiction over the Debtor's Chapter 11 case for limited <br />purposes only as is outlined in the Plan. Among such <br />purposes are resolution of objections to creditors claims, <br />correcting defects and curing omissions under the Plan: <br />
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