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1~ <br />based payments, and to increase the distribution to Class 6 General Unsecured Creditors to $23.5 <br />Million, payable over five years. The first $7 Million is scheduled to be distributed to holders of <br />unsecured claims before year end 2001, if the Quaker Coal Plan is confirmed. <br />Importantly, under the Quaker Coal Plan the Secured Lender Group, which holds <br />liens upon virtually all of the assets of Quaker Coal, will not share in any distribution of the <br />$23.5 Million to unsecured creditors, and the Debtors have agreed to work to minimize the <br />diluting effect of what appear to be largely unsupportable Class 6 claims founded upon the <br />rejection of coal supply contracts between Quaker Coal and AEP. The Committee supports the <br />Quaker Coal Plan primarily because it pays $23.5 Million to unsecured creditors, it eliminates <br />the $65 Million unsecured portion of the claim held by the Secured Lender Group, and it avoids <br />an impending liquidation by forced sale of the assets of Quaker Coal, which would yield next to <br />nothing for unsecured creditors. The competing plans offered by AEP and Wexford Capital, we <br />believe, would not, in the final analysis, pay a greater return to the holders of unsecured claims <br />on each dollar of claim, than would the Quaker Coal Fourth Amended Plan. <br />The Quaker Coal Plan is confirmable if Class 6 -General Unsecured Claims votes <br />to accept the Quaker Coal Plan. Your Ofl-icial Committee of Unsecured Creditors urges you <br />to timely return your ballot marked to ACCEPT the Quaker Coal Fourth Amended Plan, <br />and to RETECT the competing plans otTered by AEP and Wexford. <br />THE OFFICIAL COMMITTEE <br />OF UNSECURED CREDITORS <br />By: <br />Other Committee Members: <br />Charles W. Miller, Chairman <br />Orica USA, Inc. <br />Prestonburg, Kentucky <br />Banks Miller Supply Co., Inc., by Bill Calhoun, President <br />Williamson Oil Company, by Lee McGinnis, Credit Manager <br />Ohio Central Railroad, by William Strawn, President <br />RAG American Coal, by Darrell Roland <br />Mining Materials Co., [nc., by James T. Keene, Manager <br />2 <br />