1993-05-17_GENERAL DOCUMENTS - C1981017 (2)

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Plan Outline May 17 , 1993 Page 3 The M&E contract generally will be assigned to the Plan Trustee; the provisions of the contract dealing with reclamation of the mine shall be assigned to the trustee of the Reclamation Trust. All pre-petition leases or executory contracts, to the extent not previously assumed or rejected, shall be rejected. Proceeds of the Creditors ' Trust will be distributed in accordance with the terms of the Plan (see "Classification of Claims and Treatment of Claims, " below) . It specifically is anticipated that a percentage of the proceeds will be distributed to unsecured creditors (including creditors with liens junior to Sanwa) . The percentage will be agreed upon between the Committee and Sanwa prior to the filing of the Plan. As a condition to receiving distributions from the Creditors ' Trust, unsecured creditors of Resources shall be required to execute a release of claims, if any, against Resources ' corporate affiliates, officers, and directors. The proceeds of the Creditors' Trust, less (i) allowed administrative expenses allowed in Resources ' bankruptcy case, and (ii) costs of administering the Creditors ' Trust, are referred to herein as the "Net Liquidation Proceeds. " Classification of Claims and Treatment of Claims Resources' bankruptcy schedules list 250 creditors with claims in the aggregate amount of approximately $55,000, 000 . The proposed classification and treatment of those claims is set forth below. Administrative Claims. Pursuant to the Bankruptcy Code, these claims are not placed in a class and are not entitled to vote on the Plan. The claims include (i) Holden & Jessop, P.C. , whose accrued and unpaid fees through April 1993 total $46, 041, and which is holding a retainer in the amount of $9, 858; for purposes of estimating distribution under the Plan, the claim is estimated at $94 , 858 through September 1, of which $85, 000 would need to be paid from funds outside the retainer; (ii) Sherman & Howard, whose final fee application was allowed in the amount of $47, 642; (iii) Delaney and Balcomb, P.C. , special counsel for Resources, whose unpaid fees through March 1993 are $10, 724 .28; as of confirmation, accrued and unpaid fees are arbitrarily assumed to increase to $20,000; and (iv) Fairfield & Woods, P.C. , counsel for the Creditors ' Committee, whose unpaid fees through March, net of retainer, are $26,771, and who has estimated fees to September 1 at an additional $25, 000, for a total of $51, 771.