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 8
general unsecureds, this can be justified by the administrative
savings to the Creditors ' Trust.
It is possible that creditors with claims greater than
$200 might reduce their claims to $200 to get a better
distribution, and that creditors with claims greater than $10, 000
might reduce their claims to $10, 000 just be done with it. The
dollar impact of such elections would not materially affect
distribution. I therefore assume no elections, and estimate the
cost of distribution to Class 7 A at $965, and the cost of
distribution to Class 7 B at $18, 501 .
Class Eight: General unsecured claims. This class
contains all claims not otherwise classified. The class includes
(i) the Colorado Compensation Insurance Fund, who holds a
consensual lien junior to Sanwa, securing a claim in the amount
of $6, 985, 661, which is unsecured in the bankruptcy sense because
there is no value to the lien; (ii) PSCo, which holds a
consensual lien junior to Sanwa, securing a claim in the amount
of $1, 730, 038, which is unsecured in the bankruptcy sense; (iii)
numerous creditors with judgment liens, all of which are junior
to Sanwa; (iv) numerous unsecured vendor; (v) the Bureau of
Mines, which filed a claim for $1 , 043,920 based on an executory
contract involving a longwall unit being used by Resources, which
Resources rejected; and (vi) Minerals Management Service, which
filed a claim for $467, 343 for royalties accrued on federal
mineral leases rejected by Resources. The total amount of claims
held by this class is about $15 million, of which about two-
thirds is held by the members of the Creditors ' Committee.
Class Nine: Claims of insiders. This class includes
the claims of Resources ' corporate affiliates or similar
"insiders, " including (i) Carbondale Mine Services, in the amount
of $635, 093; (ii) Pitkin Iron Corporation, in the amount of
$3 , 688, 000; and (iii) shareholders holding notes for funds loaned
to Resources, in the amount of $500, 000. These claims will be
voluntarily subordinated to Class Eight general unsecured claims,
and therefore will receive nothing under the Plan.
Class Ten: Claims of former shareholders. Three groups
of former shareholders hold notes arising from Resources '
purchase of their common stock in the early 1980 's: Beverly
Dyrness, in the amount of $155, 000; Carl Strauss, in the amount
of $112, 000; and the Harker family, in the amount of $2, 380,000 .
To the extent permitted by Section 510 (b) of the Bankruptcy Code,
these claims will be treated as claims "for damages arising from
the. . . sale of. . . a security of the debtor. . . " and will be
subordinated to all claims or interests that are senior to or