1995-10-31_GENERAL DOCUMENTS - C1981017

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.,FROM :NRTURRL RESOURCES SEC. 303 866 3558 1555,10-31 12:51 #097 P.03/04 Cheryl A. Linden October 30, 1995 Page 2 -- Up to $580, 574 would be allocated fox payment-of Glass 9 general unsecured claims, to be paid no later than December 31, 1995; and -- 'Up to $200, 000 would be allocated for advances to the Creditors' Trust for preparation of MCR' s real property for sale, including costs relating to permitting, repair, limited modification of existing structures, Legal, and other costs, all as approved by Sanwa in its sole discretion. At that point, the remaining claims would include certain tax priority claims in the approximate amount of $400, 000 . These would be paid from the proceeds of the sales of MCR's property. After payment of tax priorities, Minerals would receive distributions as the subrogee of Classes 5, 6 and 9, which would be used to repay Sanwa, s new loan. Any remaining distributions would go to Sanwa as the residual claimant under MCR' s bankruptcy plan. Section 5 of the loan commitment contains various conditions to Sanwa' s funding obligations. The main item of interest to the DMG will be subsection (B) , which requires "satisfactory written evidence that the Company [Minerals] and the Division of Minerals and Geology of the State of Colorado have reached agreement as to the credit for previous reclamation work performed and as to the allocation of loan proceeds to the reclamation required on Resources' Preparation Plant Tract and a projected timetable for completion of such reclamation, which agreement shall be satisfactory to SBCC [Sanwa] in its sole discretion. " The Loan would close no later than December 15, 1995 . Thus, by December 15, the DMG would be assured that all of the funds necessary to complete reclamation would be available on or before March 31, 1996 . In view of the fact that we have proposed to close the loan with Sanwa before December 15, we request a meeting with the DMG at your earliest convenience, Bob Delaney and Lou LaGiglia advise that they are available on November 6, 7, 8, 13 or the morniaq of November 14 . At the meeting, we would like to discuss the items outlined in Section 5 (B) of the loan commitment and the clarifications to the reclamation plan outlined in Diane Delaney' s September 8 memo. If we can reach agreement on those matters, the agreement could be submitted to the MLRB for approval at the Board' s November meeting, if that is necessary. In order to expedite the discussion, it would be helpful if you or your client