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FRAM:natural TO:DMG OCT 15, 1993 8:19AM #085 P.04 <br /> UNITED STATES BANKRUPTCY COURT FOR THE U d <br /> DISTRICT OF COLORADO U �Jlj Q <br /> In re: ) <br /> MID-CONTINENT RESOURCES, INC. ) Case No. 92 11658 PAC <br /> T.I.N. 36-1475193 ) Chapter il, MC No. H&J-7 <br /> Debtor. ) <br /> THIRD MOTION FOR AUTHORIZATION TO USE CASH COLLATERAL <br /> Mid-Continent Resources, Inc. ( "Resources" ) , debtor in <br /> possession, through its attorneys, Holden & Jessop, P.C. , moves <br /> the Court for authorization to use cash collateral in the amount <br /> and for the purposes described below. The following is stated in <br /> support of this Third Motion for Authorization to Use Cash <br /> Collateral (the "Third Motion" ) : <br /> GENERAL BACKGROUND <br /> 1. Resources filed a voluntary petition under <br /> Chapter 11 of the Bankruptcy Code with this Court on February 12, <br /> 1992, Case No. 92 11658 PAC. Resources is administering its <br /> bankruptcy estate as debtor-in-possession. <br /> 2. Since the Summer of 1992, the focus of bankruptcy <br /> administration has been to liquidate Resources' equipment and <br /> real property. It is anticipated that the total proceeds from <br /> the liquidation of Resources' estate eventually will be in excess <br /> of five million dollars. <br /> 3. Pursuant to Court authorization, Machinery & <br /> Equipment Co. , Inc. ( "M&L") has been selling equipment pursuant <br /> to a confidential price list. The proceeds of equipment sales, <br /> net of costs of sale, reimbursement of Court-approved advances, <br /> and sales commissions, are paid to Resources on a monthly basis <br /> and are held in a debtor in possession account. <br /> 4. Resources currently has pending two separate <br /> motions related to the sale of a right-of-way and a parcel <br /> referred to as the "Fabrication Shop. " The proposed sales prices <br /> are $15,000 and $410,000, respectively. The amounts to be <br /> realized at closing on the Fabrication Shop are subject to <br /> closing adjustments for a sales commission, some minor <br /> environmental remediation, unpaid taxes, and other items. The <br /> precise amounts to be realized from these sales are thus unknown, <br /> but are estimated by the Debtor to be about $365,000. <br /> 5. The foregoing sales proceeds, and the sales <br /> proceeds to be realized from future sales, are cash collateral. <br />