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1. Carbondale Mine Services, Inc.. This subsidiary <br />was formed to run a machine shop and provide equipment <br />repair and similar mine services to Resources and other <br />mining operations. It no longer is operating its <br />business. Its only assets are some machinery and <br />tools, which an unrelated party offered to purchase for <br />$150,000 in 1991. <br />2. Redstone Properties, Inc.. This subsidiary was <br />formed to purchase and operate the Historic Redstone <br />Inn. In 1990, the inn was sold to an unrelated party <br />in an arm's length sale, and the proceeds were paid to <br />Sanwa and applied to debt incurred or guaranteed by <br />Resources. The inn having been sold, the corporation <br />is now an empty shell. <br />3. Redstone Corporation. This subsidiary was formed <br />to develop housing in and near Carbondale. <br />Approximately $2.6 million was invested in real estate. <br />Most of the land is vacant. An office building in <br />Carbondale was sold in 1991 for $1.7 million and the <br />proceeds were paid to Sanwa and applied to debt <br />incurred or guaranteed by Resources. The estimated <br />value of the remaining real estate is $1.5 million. <br />Pitkin Iron Corporation (discussed below) has agreed to <br />purchase the real estate for that price, and the <br />proceeds would be used to pay down debt to Sanwa <br />incurred or guaranteed by Resources. <br />4. Carbondale Power Services, Inc. ( "Power Services "). <br />This subsidiary was formed in 1989 to develop, in <br />partnership with Bechtel or Bechtel affiliates, a coal - <br />fired electrical generation facility. The name of the <br />partnership was Columbine Power Company, L.P. <br />( "Columbine "). Resources was a 2% limited partner in <br />Columbine, and would have generated substantial revenue <br />from the sale of refuse coal to the facility had it <br />been built. Columbine negotiated a contract with <br />Public Service to sell electric power, but the <br />generation facility was never built, mainly because the <br />amount of refuse coal available to run the plant was <br />determined to be uneconomic in quantity. In 1991, <br />Public Service purchased the power contract and a <br />$500,000 deposit was paid to Columbine, $150,000 of <br />which was distributed to Power Services, and of that <br />amount $100,000 was distributed via dividend to <br />Minerals. In 1992, Power Services received an <br />additional, and final, payment of $2,000,000, of which <br />$1.5 million was used to pay down debt owed to Sanwa <br />which was guaranteed by Resources. There are no other <br />assets in this entity and no operating business. <br />-2- <br />