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FRdrf: Panasonic TAD/FAX PHONE NO. : 9454958 Mar. 07 1994 11:29AM P02 <br /> C. <br /> HOLDEN & JESSOP, P.C. 1-5 0, <br /> ATTORMETS AT LAW ' <br /> 20S LAST ITTA AVENUE. SUITC 030 <br /> DENVER. COLORADO 00203-1204 <br /> 13031 660-7700 <br /> FACSIMILE:1303)660•793S <br /> March 2, 1994 <br /> VIA HAND DELIVERY <br /> Cheryl A. Linden <br /> Assistant Attorney General <br /> 1525 Sherman Street, 5th Floor <br /> Denver, Colorado 80203 <br /> Re: Mid-Continent Resources, Inc. ("Resources" ) <br /> Dear Cheryl: <br /> Resources today filed an Amendment to Debtor's Second <br /> Amended Plan. of Liquidation, which is enclosed. All of the Plan <br /> modifications set forth therein pertain to the treatment of Class <br /> 5 reclamation claims. <br /> The primary ' modification is the deletion of the <br /> previously-proposed stay of the DMG litigation. The amendment also <br /> deals with an additional concern which you have mentioned, which <br /> involves services to be performed by Bert Kind, who is removing <br /> scrap and structures pursuant to the equipment liquidation contract <br /> approved by the bankruptcy court. The State apparently fears that <br /> King may not do what he is contractually obligated to do, despite <br /> his track record reclaiming industrial sites. The amendment limits <br /> the credit for King's services to those services which are actually <br /> performed. We view this as a very minor point. <br /> It is my understanding that the State may still oppose <br /> the Plan on the grounds that Resources might be unable to sell its <br /> assets, and thus that there might be no distributions to the State. <br /> Please keep in mind that the Plan is a liquidation plan. Its only <br /> purpose is to set up appropriate .mechanisms to sell Resources ' <br /> assets for maximum value within a reasonable time, and to divide <br /> the proceeds among the different creditor groups. <br /> The only -- other beneficiaries of the Plan are general <br /> creditors, who receive a 5% distribution which will total about <br /> $800,000, and claims for other environmental remediation, for which <br /> $250,000 is set aside. The remaining beneficiary, Sanwa, receives <br /> a distribution only if the State has first received $3''million in <br /> cash less services performed at no cost by King. <br /> I can appreciate that the State would like Resources to <br /> deliver $3 million cash at confirmation, but since the funds do not <br />