2004-03-19_GENERAL DOCUMENTS - M1997054

Home Browse Search

i o'.Or~~7 /rl- 97 OS~v E-FILED UNITED STATES BANKRUPTCY COURT 3- l 7 •- U y FOR THE DISTRICT OF COLORADO In re: ) AGILE STONE SYSTEMS, INC. ) Case No. ) Chapter I1 Debtor ) NOTICE PURSUANT TO LOCAL BAN7QIUPTCY RULE 202 OF CREDITOR DR. MITCHELL E. ALBERT'S MOTION FOR ALLOWANCE OF ADMINISTRATIVE EXPENSE CLAIM TO ALL PARTIES IN BVTEREST: NOTICE IS HEREBY GIVEN that the movant Dr. Mitchell Albert has applied to this Court for allowance -- - o-fan administrative claimtin-the :unount of$175,000 as_of Apri127," 2004 and continuing thereafter at the rate of $16,667 per month until Apri127, 2005. The claim is based upon a Nonparticipating Royalty Deed"and'Agreement- - - (the "Royalty Agreement") entered by and between the Debtor and Dr. Albert on Apri128, 2000. A copy of the Royalty Agreement is attached to the Motion as Exhibit A. Dr. Albert's royalty interest is a real property interest under C.R.S. § 38-30-107.5 that guns with the ]and and is binding upon the Debtor's successors and assigns. Under the terms of the Royalty Agreem~;nt, the Debtor is required to pay Dr. Albert either a minimum royalty payment or a production royalty payment tied ro the tonnage of aggregate mined. The Royalty Agreement was an integral component of the consideration l~,iven for the purchase of the Pazkdale Quarry. As the quarry operations have continued post-petition, the DebU>r's obligations under the Royalty Agreement likewise continue, and should be deemed "actual, necessary costs and expenses ofpreserving the estate" under 11 U.S.C. § 507(b)(1). in calcuiating his claim Dr. Albert has relied upon the minimum royalty payment guarameed under the Royalty Agreement rather than Ore production royalty because of limited available information and (2) the assumption that the Pazkdale Quarry has not met ttre monthly tonnage minimums under the Royalty Agreement. Dr. Albert's claim may be amended :rs further information is made available. Asset forth in more detail in the motion, under the minimum royalty payn rent formula, the montlily royalty payment due Dr. Albert for the 2003 Royalty Year was $14,583.33, for a total as of April 27, 2004 of $175,000. For the 2004 Royalty Year, the monthly royalty payment due Dr. Albert will be $16,666.67. The amounts due aze properly characterized as administrative expense claims entitled to priority under I 1 U.S.C. § 507(a)(1) that must be paid on the effective date of the Debtor's Plan of Reorganization. A copy of the pleading is available for inspection is the Bankruptcy Court Clerk's Office, or upon request from the undersigned attomey. Pursuant to Rule 202 of the Local Rules of Bankruptcy Procedure, if you desire to opposed this action you must fdr a written objection and request for a hearing with the Court on or before APRIL 9, 2004 and serve a copy thereof' on the undersigned attomey. Objections and requests for hearing shall clearly specify the grounds upon which they are based, including the citation of legal authority, if any. General objections will not be considered by the Court. Tn the absence of a timely and substantiated objection and request for hearing by an interested party, the court may approve or grant the a forementioned application without any frther notice to creditors ar other interested parties. DATED this 17th day of March, 2004 RECEIVED MAR 19 2004 Oivisisn of Minerals & Geslopy Respectfully submitted, SENDER & WASSERMAN, P.C. /s/David V. Wadsworth Harvey Sender, #7546 David V. Wadsworth, #32066 1999 Broadway, Suite 2305 Denver, Colorado 80202 303-296-1999 / 303.296-7600 FAX E-mail: sender ct sendwass.com ATTORNEYS FOR DR. MITCHELL E. ALBERT