1992-10-21_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 10/21/1992
• Doc Name: Response to the 2nd status report
• From: Winston & Strawn
• To: Holden & Jessop, P.C.
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

`VI STON &- STRANNT- i JO
FREDERICK H.WINSTON(1853.1886) 35 WEST WACKER DRIVE NEW YORK OFFICE
SILAS H STRAWN(1891.1946) CHICAGO, ILLINOIS 60601-9703 175 WATER STREET
NEW YORK NV 10038�981
[phone] 212)269Q500
WASHINGTON DC OFFICE
FACSIMILE(312)558.5700 1600 L STREET N W
NEAL L.WOLF WASHINGTON.OC 20005-3502
[phone] r 202)371.5700
October 15, 1992 _
VIA TELECOPY AND U.S. MAIL
James B. Holden, Esq.
Holden & Jessop, P.C. _
303 East 17th Avenue �`
Suite 930 1�t�r`�
Denver, CO 80203-1264
Re: Mid-Continent Resources, Inc.
Dear Jim:
I am writing this letter in response to the Second
Status Report which you filed with the Court on or about
September 14 , 1992 and your September 22, 1992 letter to Stephen
W. Seifert, Frank R. Johnson and me. While Sanwa Business Credit
Corporation and I remain very pleased with your desire and effort
to expedite the resolution of the case, we are troubled by your
discussion of the June 16, 1992 settlement conference, in your
office, between Mr. Seifert, on behalf of the Official Committee
of Unsecured Creditors and Messrs. Andrew Heinz, Al Golembeski,
David Crumbaugh and me, on behalf of Sanwa. The cause of our
concern is the following:
(1) Sanwa has made no settlement offer to the
Committee at that, or any other, time. On June 16, 1992,
Messrs. Golembeski and Heinz did discuss a settlement
concept which might, under certain circumstances, be
acceptable to them and did indicate that they would be
willing to recommend to Sanwa's senior management that Sanwa
make a settlement offer in accordance with such structure.
They emphasized to Mr. Seifert, however, that they would not
recommend such a settlement to senior management unless and
until Sanwa had first received a firm settlement offer from
the Committee. Sanwa has never received a settlement offer
of any kind from the Committee. Hence, Messrs. Golembeski
and Heinz have never made any recommendation regarding
settlement to senior management.
(2) The settlement concept which the parties did
discuss at the June meeting in your office was conditioned
upon the consummation of the lease/sale transaction then
being negotiated between Mid-Continent Resources, Inc and
Crystal Springs Coal, Inc. ("Crystal Springs") . One of the