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

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Plan Outline May 17 , 1993 Page 6 of the Mine Site property, which will come out of the net proceeds to be realized by the secured and unsecured creditors . The Mine Site is unlikely to sell without a good portion of the reclamation performed. If we can only look to sales proceeds of the Mine Site to pay for reclamation, we will have a chicken-and-egg problem. As a practical matter, we need to provide for a transfer of some equipment sale proceeds to the Reclamation Trust, perhaps in a lesser amount than the $1 .5 million mentioned above, to be eventually reimbursed from sale of the Mine Site property. Class Three: Patsantaras. Mabel Patsantaras holds a note in the approximate amount of $30,000 secured by a senior lien on 2900 acres of coal basin property. The claim either will be paid in full by the Creditors ' Trust or assumed in full by the purchaser of the 2900 acres. Class Four: Caterpillar. Caterpillar holds a purchase money security interest in a backhoe and loader. An adequate protection stipulation is in effect which pays Caterpillar $2 , 000 per month; the current loan balance is $43,686, which ought to be $37 , 686 by September 1 . The M&E contract calls for eventual sale of the equipment but for the retention of the equipment for up to three years, to be used in carrying out reclamation activities . Rather than continue the monthly payments post-confirmation, the Plan should pay off Caterpillar from the Creditors ' Trust. The Caterpillar equipment would be transferred to the Creditors ' Trust, and the proceeds of the eventual sale of the equipment would be retained by the Creditors ' Trust. Class Five: Sanwa. Resources is obligated to Sanwa in the approximate amount of $18 , 000, 000 on direct loans to Resources, and in the additional approximate amount of $10,500, 000 on loans made to Resources ' parent and sister companies, which were guaranteed by Resources. All loans are secured by blanket liens which cover all assets, subject only to liens pledged as security for the claims listed in Classes One, Two, Three and Four. Sanwa will receive a fixed percentage, to be agreed upon between Sanwa and the Committee, of the funds to be distributed from the Creditors ' Trust to Sanwa and Class Eight (general unsecured creditors) . Sanwa shall not participate in the case as an unsecured creditor with respect to the "undersecured" portion of its claim. For purposes of estimating distribution, I assume the split of revenues requested by Steve Seifert in his April 8