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6. Geneva Steel, which had been one of the principal users of Resources' coal for <br /> decades, expressed interest in purchase of the mine in the winter of 1991 and commenced its due <br /> diligence review. <br /> 7. To facilitate sale of the mine to Geneva Steel, Resources filed a petition in <br /> bankruptcy on February 12, 1992. <br /> 8. After the bankruptcy filing, as before, Pitkin continued to provide payroll services <br /> for personnel working at the mine site and, where necessary, assisted Resources-in making <br /> purchases of goods and services. Resources was billed for these charges and made payments <br /> to Pitkin. <br /> 9. Geneva continued its due diligence review in preparation for possible purchase <br /> of the mine until late July 1992 when Geneva decided not to buy the mine. <br /> 10. Because the assets of Resources were held for sale to Geneva, there was no other <br /> liquidation of real estate or equipment in this time period. <br /> 11. Resources determined that efforts to sell as an operating mine had been exhausted <br /> and that it should go forward with the wholesale liquidation of assets and proceeded with sales <br /> of equipment and real estate. <br /> 12. Resources filed the first Motion for Authorization to Use Cash Collateral on <br /> February 25, 1993. Included in the request was an authorization to employ contract labor as an <br /> administrative expense to meet the needs of the debtor, ranging from environmental to <br /> liquidation related expenses. The order authorizing use of cash collateral was signed on <br /> March 22, 1993. <br /> 13. Pursuant to the order, Pitkin provided contract labor to carry out various functions <br /> specified and requested by Resources. These included dredging sediment ponds, safeguarding <br /> machinery and equipment intended for sale, assisting with sales, and equipment repair and <br /> maintenance. <br /> 14. Resources filed a second Motion for Authorization to Use Cash Collateral on May <br /> 17, 1993, which included the request for cash collateral authorization for additional contract <br /> labor and expenses related to reclamation and environmental clean-up. The order authorizing <br /> use of cash collateral for such purposes was signed on June 9, 1993. <br /> 15. The third Motion for Authorization to Use Cash Collateral filed by Resources on <br /> October 19, 1993, was approved by the Court on November 17, 1993. The Motion sought <br /> approval to use cash collateral for " . . . (ii) general and operating expenses . . . (iv) pond <br /> cleaning, (v) flume repair, and (vi) PCB removal." <br /> 2 <br />