REV92052

• Permit No: C1984067
• IBM Index Class Name: Revision
• Doc Date: 10/21/1987
• Doc Name: PEERLESS RESOURCES BANKRUPTCY PETITION CASE 86B2846M PN C-84-067
• From: MLRD
• To: FRED BANTA
• Type & Sequence: SF1
• Media Type: D
• Archive: No

III IIIIIIIIIIIIIIII STATE OF COLORADO
Roy Romer, Govei
DEPARTMENT OF NATURAL RESOURCES
MINED LAND RECLAMATION DIVISION
DAVID C. SHELTON, Director
DATE: October 21, 1987
T0: Fred Banta \ ~T/~
FROM: Peter O'Connor V
RE: PEERLESS RESOURCE BANKRUPTCY PETITION (CASE M0, A662846M);
PERMIT N0. C-A4-057
On October 19, 1987, you requested I look into this case to determine the
disposition of the reorganization filinq. Addressed below is what I have been
able to find out so far.
Sometime around April, 1986 Peerless Resources filed for bankruptcy
protection, Chapter 11 (reorganization). It does not appear much happened
with this filing until a motion to convert this bankruptcy filing from
Chapter 11 to Chapter 7 (liquidation) was filed on July 20, 1987 by two of the
creditors, Melco, Inc., and Burnett Construction Company. No action by the
courts has occurred on this motion since it has been obfected to by
Peerless Resources' attorneys due to a technicality; one of the creditors was
not properly notified.
Subsequent to this conversion motion, Peerless Resources' attorneys have
submitted a reorganization plan. This plan was filed around the week of
September 8, 1987 and an amended plan was filed during the week of October 13,
1987, A disclosure statement (similar to a stock prospectus) still needs to
be filed which should he done within two weeks according to Pete lbany f-
John Franks and Associates (Peerless Resources' attorneys). Once e
disclosure statement is filed, the necessary reorganization information will
have been submitted, The court will then schedule a hearing (which will take
a couple of months due to the tremendous backlog of cases)to hear objections
or agreements to the proposed reorganization plan. Eventually, a vote of the
creditors will be taken to decide the outcome of the plan
Mr. Albany is uncertain of the outcome of this vote. The length of time
between filing for bankruptcy and the submittal of the reorganization plan
(about 16 months) does not favor Peerless resources. Also, the technicality
issue of the conversion motion should be resolved soon which will impact the
reorganization hearings. /
As I find out more information, I will let you know.
cc : Mike Savage /I ~~ ' ~ ~ ~ ~
Oavid Berry l
srs
2979E
423 Centennial Building, 1313 Sherman Street Denver, Colorado 80203-2273 Tel. [phone]