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,s-ROM :NATURAL 303 866 5128 1995.06-27 12:59 #k221 P.02/08 <br /> HOLDEN & JEssoIE', P.C. <br /> ATTORNM AT vw <br /> G / 303 C"T nT"AVCMug,sV1YL 03v (� <br /> OeNVER, COLORADO � <br /> (30.21850-7700 C[S. r1� <br /> F v AeskulM(3031 000-7223 U N L 7 a <br /> ar <br /> June 27, 1995 OVA ��j sECqj0rT <br /> VIA Rh= DELIVERY <br /> Cheryl A. Linden <br /> Assistant Attorney General <br /> 1525 Sherman Street, 5th Floor <br /> Denver, Colorado 60203 <br /> Re: Mid-Continent Resources, Inc- ("MCR11) <br /> Dear Cheryl: <br /> I am Writing in response to your June 2 letter, in which <br /> you requested that funds being held by the Mid-Continent Resources <br /> Creditors' Trust for Class 6 reclamation claims be distributed to <br /> the Division of Minerals and Geology (the "DMG11) . On June 26, the <br /> Trustee for the Trust, Louis LaGiglia, mailed a check to the DMG, <br /> under separate cover, in the amount of' $385, 000. These funds <br /> derive from the Carbondale Industrial Park sale which closed in <br /> February. <br /> As Mr. LaGiglia moves forward with other property sales, <br /> a number of which are pending, I want to emphasize that the <br /> Creditors, Trust is not required to immediately distribute all <br /> proceeds of property sales. Section 6.3 of the Plan provides that <br /> the funds to be distributed to creditors are limited to "Net <br /> Proceeds" from sales, which is defined as "the cash proceeds of <br /> property sold under the Plan, after payment of reasonable fees, <br /> commissions, title insura.ilce, advertising expenses, prope#rEY taxes, <br /> or similar costs of sale and, with respect to the Creditors' Trust, <br /> the fees of the Creditors' 'Trustee and other reasonable costs of <br /> administering the Creditors' Trust. " In particular, I Trots that <br /> there are upcoming property tax payments which must be made to the <br /> County Treasurers in order to avoid the loss of valuable real <br /> estate which is to be sold under the plan_ As we go forward with <br /> other property sales, Mr. LaGiglia will need to reserve sufficient <br /> sales proceeds to cover these anticipated expenses. <br /> your letter asks for confirmation that the. account in <br /> which funds have been held is an interest-bearing account and that <br /> the funds to be distributed will include interest earned on the <br /> $385, 000 . This confirms that the funds have been held in an <br /> interest-bearing account. This was one of "the principal reasons <br /> c:\sex\,a1�Lz(ao�a_rza <br />