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,.FROM :NATURAL 303 EMSS S128 1995.06-27 12:S9 #221 P.03108
<br /> Cheryl A. Linden
<br /> June 27, 1995
<br /> Page 2
<br /> for Mr. LaGiglia's retention of the funds. See Mr. LaGiglia' s
<br /> April 26, 1995 letter to Andrew Heinz and Jeff Tetrick, enclosed,
<br /> in which he states that at his April 4, 1995 meeting with the DMG,
<br /> the DMG "agreed to temporarily allow me to hold funds because they
<br /> are in an interest bearing account, whereas [the DMG] would have to
<br /> hold the funds in a non interest bearing account. "
<br /> As to your second point, the $3'85, 000 being forwarded to
<br /> the DMG does not include interest. The amount of interest earned
<br /> on the $385, 000 is a few thousand dollars at most. Mr. LaGiglia is
<br /> retaining this* interest for the time being as a credit against
<br /> reclamation expenses incurred by the Creditors' Trust. See Mr.
<br /> LaGiglia's letter to Mike Long dated May 11, 1995 ("Mr. Renner has
<br /> contacted me to request various maintenance items be done at the
<br /> mine site. I will accept this as your authorization to do this
<br /> work on behalf of the DMG") .
<br /> More generally, the Creditors' Trust does not concede
<br /> that interest accrues to the benefit of a particular creditor from
<br /> the moment that an asset is liquidated and cash is received by the
<br /> Trust . For example, a distribution of $127,999.98 was made to
<br /> Class 9 general unsecured creditors in May. The primary source of
<br /> funds for this distribution was the sale of the Carbondale
<br /> Industrial Park in February. That distribution did not calculate
<br /> interest earned on those funds between February and May. The
<br /> interest so earned remains in the Creditors' Trust and is available
<br /> for later distribution. When such interest is distributed, it will
<br /> be allocated '69% to the Division and 23% to Class 9 creditors, like
<br /> all distributions under the Plan.
<br /> Accounting by the Trust tO the DMG
<br /> Your June 2 letter requests copies of the acdountings
<br /> which Mr. LaGiglia is required to submit to the Creditors'
<br /> Representatives pursuant to Section 6 .2 .3 (viii) of the Chapter 11
<br /> Plan. I am enclosing reports dated September 27, 1994 (for the
<br /> period ending August 31, 1994) , September 30, 1994, October 31,
<br /> 1994, December 22, 1994 (tor the period ending November 30, 1994) ,
<br /> February 3, 1995 (for the period ending December 31, 1994) ,
<br /> February 28, 1995 (for the period ending January 31, 1995, March
<br /> 28, 1995 (for the period ending February 28, 1995) , April 26, 1995
<br /> (for the period ending March 31, 1.995) , May 25, 1995 (for ,the
<br /> period ending April 30, 1995) , and June 22, 1995 (for the period
<br /> ending May 31, 1995) . Mr. LaGiglia will add Mike Long to the
<br /> mailing list on future monthly reports.
<br /> Incidentally, the $385, 000 being distributed to the DMG
<br /> is based on the report for the period ending March 31, 1995 . You
<br /> will note a section on the first page of that report entitled
<br />
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