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!. <br /> <br />RAY. OUINNEY & NEBEKER <br />PPO~[33~ONwL COwaOaw~iON <br />ATTORNEYS AT lAW <br />,.,~„ o~N <br />o <br />r m <br />- r <br />i <br />w <br />N <br />vY 30V <br /> e <br />O. BOA <br />i <br /> 3w~i u v. VTw P <br />e <br /> C AiOVO ~iCC <br />t' rwC3iu <br />L( e0 •e0~ ale ~e~a ~ 5[C <br />P <br /> • <br /> e~aO <br />r <br /> <br /> <br /> Salt Lake City Office <br /> Direct Line (601)323-Jill <br /> <br /> <br />EXIIIBTT "C'• <br />Re Proposed Disuibulion From <br />Presmption Drug Program O( <br />CF&I Steel Corporation <br />Dear Participant of CF&1 Steel Corporation Prescription Drug Program: <br />Before it ceased operations on March 3, 1993, CF&I Steel Coryoration ("CF,$I") <br />administered a prescription dmg program (e "Drug Program") that was funded by eligible retirees <br />and then spouses ("Participants') You have been identified as one o(an estimated 4,857 <br />Participants. <br />After discussions between represenlalives ofthe United Steelworkers of America, AFL- <br />CIO (the "USWA"), on March 1, 199? CF&I [rensferred 5749,000 00 to the Voluntary <br />Employee's Beneficiary Asociation (the "New VEBA") established in accordance with terms of <br />the confirmed Debtors' And Railroad Trustee's First Amended And Restated Joint Plan Of <br />Reorganiulion Dated Dewmber 1, 1992 ("Debtors' Confirmed Plan") end applicable provisions <br />of the Internal Revrnue Code The E749,000 00 amount was estimated at the time and was <br />subject to further audit. From the 2749,000.00 transferred to the New VEBA, 569,002 00 in • <br />claims incurred before March 3, 1993 but procesud after March 3, 1993 were paid (the "Runout <br />Claims"), leaving a balance of 3679,998 00. After wnsulting with the USWA, Reorgartized <br />CF&I (CF&I's name after March 3, 1993) retained Schneider Downs & Co ,Inc. ("Schneider <br />Downs"), Certified Public.4ccountants, to conduct a review and analysis ofrecords maintained by <br />First Health and Disciplined Benefit Services to calculate the conllibutions to and payments from <br />the Drug Plan and detemtine the correct amount of the excess that should have been segregated <br />