1993-01-15_GENERAL DOCUMENTS - C1981017 (3)

Home Browse Search

, Y * ' OFFICE OF GENERAL COUNSEL MID-CONTINENT RESOURCES, INC. P.O.DI AV%790 $18 COLORADO AVENUE IM"HONE GLENWOOD SPRINGS,COLORADO 81601 FAx AREA CODE bs AREA ODE 9/5-" 945-IJOS January 6, 1993 Mr. William G. Boswell President EE�+ Redstone Development Company (LLC) ��.� 1150 Augusta Way Salt Lake City, Utah 84048 JA 199ti Dear Mr. Boswell: p� As previously mentioned to you, MiN Conntnen� sources' (MCR) Board of Directors have taken the position that the "Effective Date" on the sale contract of MCR assets to your company cannot begin until cash to cover the purchase price, plus assurances of MLRD Bond surety are escrowed. On the other hand, your company and Mr. Ernest Tietzen for Alta-Bates & Company have taken the position that securities will not be sold or hypothecated to provide the cash for the purchase price until Bankruptcy Court approval. - . The concern of MCR, of course, as well as the Creditors, is that money for closing, as well as surety for the MLRD Bond, may not be available so as to allow closing. To try to arrive at a solution to this problem, I discussed with Mr. Tietzen the idea of scheduling a meeting either at Glenwood Springs, or if preferred, at Grand Junction, at which alternatives could be discussed. With our present lack of information we do not feel that a surety bond posted by International Casualty Underwriters would be particularly helpful . We know nothing about this company. In my conversation with Mr. Tietzen and I believe as was discussed between you and John Reeves, it was agreed that we would be provided with a draft of proposed escrow instructions as well as the surety document this week. I am quite certain that if the transaction is to proceed on the basis you have outlined, our side will require that negotiable publicly traded securities be placed in escrow in an amount and of a quality that will satisfy our side as to the marketability and value of the same, together with escrow