GENERAL33643 - Laserfiche WebLink

Home Browse Search

Colorado filed proof of claim No. 1-0166 to cover reclamation cosu under both permits' in the amount of $1,270,500 unsecured, $234,00 secured and 5590 priority.' The claim was later amended by modifying the amount of the alleged bond shortfall to approximately $400,000. Both parties agree that this court has authority under 11 U.S.C. § 502(c)' to estimate the unliquidated amounts in excess of the financial warranties in place to cover Quarry reclamation cosu. Based on evidence presented at the hearing, and assuming the forfeiture of the bond and letter of credit, Colorado's unsecured, non-priority claim in excess of the $186,000 in financial warranties is $36,662.'• CF&I'S MOTION FOR ABANDONMENT PURSUANT TO SECTION 554(a) The next issue is whether CF&I can abandon the Quarry under § 554(a) in alleged contravention of state laws designed to protect public health and safety. Under § 544(a) "the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value and benefit to the estate."" The evidence presented at the hearing justifies abandonment under § 554. ' The claim included remediation cosu for a permit covering the Cation Dolomite Quarry. ' Colorado now concedes that iu priority claim of 5590 in mnnecUon with unpaid pre-petition penalties assessed against CF&I is a general unsecured claim. ' Future citations are to Title 11 of the United States Code, uNess otherwise noted. No deduction is made for the value of the Quarry abandoned to Colorado because, just as there is no realisable equity to CF&I as discussed in subsequent sections of this ruling, there is no evidence of realirable value to Colorado after abandonment. No trustee had been appointed is this case as of the date of the presentation of evidence, although a plan has now been confirmed. CF&I, in iu capacity as debtor-in-possession, has the authority pursuant to 4 1107(a) to make the decision relating to abandonment of estate property.