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company's assets are held by that company and other companies cannot use another <br />company's assets. The secured lenders (mostly banks) in the consolidated case have a <br />secured interest in the assets of all the companies in the approximate amount of $130 million <br />because of agreements which cross-collateralized all 20 companies' property to secure a <br />loan. From discussions with vazious counsel involved in this case, the lenders want a <br />liquidation of assets to resolve the bankruptcy proceedings while the debtors want to <br />reorganize. However, discussions between the lenders and debtors aze on-going. The <br />debtors are to file a proposed reorganization plan in June 2001. It is uncertain whether the <br />Division will benefit from either a reorganization (since Powderhorn will not likely continue <br />to exist), or from a liquidation (since all the funds would likely go to the secured lenders). <br />According to documents filed with the bankruptcy court in Kentucky, where the <br />bankruptcy proceeding is pending, Powderhorn has no assets except certain equipment and <br />machinery estimated to be worth $1 to $2 million. Powderhorn has obtained approval from <br />the court to sell the machinery and equipment. The proceeds from the sales are to be held in <br />escrow until the court determines which entity is to receive them. The secured lenders have <br />asked the court to distribute the proceeds to them in partial payment of their $130 million <br />secured interest. The Division has objected and has requested that the court set aside the <br />funds for reclamation. <br />Powderhorn has no visible means to finance reclamation of the site other than to use <br />the proceeds from the sale of its only asset or from the forfeiture of its bond. The company <br />ceased extraction operations in December 1999, with notice of permanent cessation <br />