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JUL 08 '93 05:55PM HOLDEN & JESSOP P.5
<br /> Neil Wolf
<br /> Stephen W. Seifert
<br /> Frank R. Johnson
<br /> July Sr 1993
<br /> Page 4
<br /> In the balance of this letter I want to review
<br /> estimates of value. I intend to have this discussion appear in
<br /> some form in the Disclosure Statement but wanted you to have it
<br /> as you reviewed the Plan.
<br /> Liquidation gg&imates
<br /> on July 27, 1992, in a letter addressed to Steve and
<br /> Neal, I provided Resources' preliminary estimate of the
<br /> liquidation value of its property, as follows:
<br /> "Best" Case "Worms" Case
<br /> Equipment S3,500,000 $3,000,000
<br /> Mine Site 1,800,000 1,000,000
<br /> Carbondale Industrial Park 800,000 $00,000
<br /> Fabrication Shop 500,000 300,000
<br /> Coke Oven Tract 200,000 150,000
<br /> 160 Acne Tract 160,000 100, 000
<br /> Rockdust Plant 700.000 500,000
<br /> 5716601000 $5,550,000
<br /> Less reclamation coats 14500, 000 2,000.000
<br /> $6,160,000 $3,550,000
<br /> More recently, in a memo to you dated May 17, 1993,
<br /> Resources dropped the estimated net value of Equipment to
<br /> $2,000,0001 raised the estimated value of the Mine site to
<br /> $2,000,000; raised the estimated value of- the Carbondale
<br /> industrial Park to $1,000,000; estimated the value of the
<br /> Fabrication Shop at the previous low end estimate of $300,000;
<br /> estimated the value of the Coke Oven Tract at the previous low
<br /> end estimate of $150,000; and separately estimated the value of
<br /> the Rail Loadout Site, previously included in the Mine Site, at
<br /> $300,000. The 160 ,Acre Tract, previously estimated at between
<br /> $100,000 and 160,000, was sold at the upper figure. The total of
<br /> the revised estimates came to $5,910,000.
<br /> Most recently, Resources obtained an appraisal on three
<br /> parcels, copies of which are enclosed.
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