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

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 5/17/1993
• Doc Name: Outline of Chapter 11 plan ‎(Memo)‎
• From: Jim Holden
• Permit Index Doc Type: General Correspondence
• Media Type: d
• Archive: No

Plan Outline
May 17 , 1993
Page 7
"Committee Term Sheet, " which was 77% to Sanwa and 23% to the
general unsecured creditors.
Class Six: Priority claims. Claims include (i) the
claim of the Colorado Department of Revenue for sales and use
taxes, in the approximate amount of $264 , 000; (ii) the claim of
the Colorado Department of Revenue for severance taxes, in the
approximate amount of $72 , 000; and (iii) the claim of the Office
of Surface Mining for reclamation taxes in the approximate amount
of $24 , 000 . These claims, in the total amount of $360, 000, will
be paid in full from the Creditors ' Trust.
Class Seven: Small unsecured claims. There are
approximately 250 creditors in the case. Many of the creditors
have small claims and it would be desirable to cash them out on
or shortly after the effective date of the Plan. Some of the
claims are so small that we will spend more on copying and
postage to distribute materials to the holders of the claims than
it would take to just pay them off. Other claims, while large
enough to justify postage, will impose costs of administering the
Creditors ' Trust which are unjustifiable relative to the cost of
eliminating the claims. Accordingly, the Plan sets up two
classes of "convenience claims" :
Class 7 A: There are 19 scheduled claims of $200 or
less, totalling $965. The amount of these claims is less than
the costs that will be incurred by including these creditors in
the Plan confirmation process and in the administration of the
Creditors ' Trust. These creditors therefore will be left
unimpaired and paid in full and in cash from the Creditors ' Trust
on the effective date of the Plan. Any creditor with a claim
greater than $200 may be treated as a Class 7 A creditor by
reducing its claim to $200 .
Class 7 B: There are an additional 128 scheduled claims
in the range of $201 to $10,000, whose claims aggregate $370, 034 .
Such creditors shall be impaired under the Plan but shall be
permitted to receive a one-time cash payment from the Creditors '
Trust, equal to 5% of their claims, in full satisfaction of their
claims. Any creditor with a claim greater than $10, 000 may be
treated as a Class 7 B creditor by reducing its claim to $10, 000 .
The intent is to simplify the life of the Plan Trustee
by eliminating most claimants at the outset. I have set the
fixed payment to Class 7 B to be approximately the same as the
estimated distribution to general unsecured claimants. To the
extent that this distributes a little more to Class 7 B than to