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iiiiiiiiiiiiimiii <br />999 <br />STATE OF COLORADO <br />Roy Romer, Governor <br />DEPARTMENT OF NATURAL RESOURCES <br />MINED LAND RECLAMATION DIVISION <br />FRED R. BANTA, Director <br />DATE: March 2, 1988 <br />T0: Michael Savage <br />FROM: Peter O'Connor <br />RE: Peerless Resources Bankruptcy Filing; Permit C-84-067 <br />As part of developing the background information for the upcaning Show Cause <br />hearing before the Board, you requested I contact the various attorneys <br />involved in Peerless' bankruptcy petition. <br />On March 1, 1988 I contacted Pete Albany and Greg Notarianni. Mr. Albany <br />represents Peerless and stated a finalized amended plan has been filed with <br />the bankruptcy court. He mentioned that the basis for the reorganization <br />plan hinged upon Peerless having contracts to sell lump coal. To date, <br />Peerless has not secured these contracts therefore, limiting implementation of <br />the plan. Mr. Albany stated he would send us the latest copy of the <br />reorganization plan and disclosure statement. <br />Mr. Notarianni represents Springer Materials which is the company that posted <br />the reclamation bond, on behalf of Peerless, for this site. Mr. Notarianni <br />stated that being a real estate attorney not familiar with bankruptcy court or <br />mining laws limit his abilities in the case. He was very concerned with the <br />forthcoming Show Cause hearing as it potentially affects the reclamation <br />bond. He is also uncertain of the reorganization plan primarily because of <br />his limited background. <br />On March 2, 1988 I contacted Alan Merlon who represents two of the larger <br />creditors: Burnett Construction and MELCO. Mr. Merlon had previously filed a <br />petition to convert the Peerless bankruptcy from Chapter 11 (reorganization) <br />to Chapter 7 (liquidation). This conversion petition was held in abeyance <br />since Peerless finally committed to filing a reorganization plan. After <br />reviewing this plan, Mr. Merlon contacted Mr. Albany to inform him they do not <br />believe the reorganization plan is feasible. Therefore, Mr. Merlon plans to <br />refile his conversion petition tomorrow (March 3). Since it was previously <br />filed he will be requesting the courts to approve a shorter notice period of <br />10 days. If agreed upon, he believes a finalized decision by the courts on <br />the conversion petition will be rendered by March 22, 1988. Mr. Merlon has <br />added us to his list of mailings and will forward us all conversion petition <br />information. <br />/bca <br />cc: Randy Price <br />5703E <br />423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203-2273 Tel. (303) 866-3567 <br />