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.-FRCAI NATURAL RESOURCES SEC. 303 866 3558 1995,10-31 12:Sl #097 P.02/04 <br /> JE:Ssop, P.C. <br /> ATTORMETS AT LAW <br /> 303 EAST t7T' ^V9NV9!- SUITE 930 <br /> CIFNVIER, COLORADO 4BO203-1196-4 <br /> 13031 8410-7700 <br /> FACSIM16C 930$)860-7233 <br /> L <br /> October 30, 1995 <br /> 0,C T n 19;5 <br /> VIA RAND DELIVERY 0MCE OF TuE <br /> A7 N_-Y pzNmzAL <br /> Cheryl A. Linden <br /> Assistant Attorney General <br /> 1525 Sherman Street <br /> 5th Floor <br /> Denver, Colorado 80203 <br /> Re: Mid-Continent Resources, Inc. (11MCR") <br /> Dear Cheryl : <br /> As I mentioned in my letter of' october 12, Mid-Continent <br /> Minerals, Inc. ( "Minerals") met several days ago with Sanwa <br /> Business Credit Corporation ("Sanwa,,) to discuss a loan which would <br /> be used to fund the balance of MCR's reclamation obligations under <br /> its bankruptcy plan. <br /> I am enclosing a loan commitment which has been issued by <br /> Sanwa. The commitment is very similar to the proposal outlined in <br /> my letter of October 6 . Minerals would borrow up to $2 million <br /> from Sanwa. Borrowings would occur in stages in order to minimize <br /> interest expense. Subject to reduction by distribution of USPS <br /> exchange proceeds, loan proceeds would be used as follows ; <br /> Up to $1, 296,414 would be allocated for payment of <br /> Class 5 reclamation claims, to be paid no later than <br /> March 31, 1996. As previously outlined, this would <br /> satisfy the remaining obligations under the Plan to Class <br /> 5, pursuant to Lou LaGiglials accounting of previous <br /> distributions, excepting only the estimated value of the <br /> reclamation services being performed by King & Associates <br /> at no cost to MCR or the DMG; <br /> -- up to $169, 110 would be allocated for payment of Class <br /> 6 environmental claims, to be paid no later than March <br /> 31, 1996; <br /> C\JRH�NMXMX\L1KD=.24 <br />