1994-03-03_GENERAL DOCUMENTS - C1981017 ‎(2)‎

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 3/3/1994
• Doc Name: Update on the Mid-Continent Liquidation plan
• From: Office of Attorney General
• To: Maxine Stewart
• Permit Index Doc Type: General Correspondence
• Media Type: D
• Archive: No

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GALE A. NORTON STATE OF COLORADO STATE SERVICES BUILDING
Attorney General 1525 Sherman Street - 5th Floor
DEPARTMENT OF LAW Denver, Colorado 80203
STEPHEN K. ERKENBRACK Phone [phone]
Chief Deputy Attorney General OFFICE OF THE ATTORNEY GENERAL FAX [phone]
TIMOTHY M. TYMKOVICH
Solicitor General
March 3, 1994
Maxine Stewart
3465 Otis Street
Wheatridge Co. 80033
RE: Update on the Mid-Continent liquidation plan
Dear Board Member:
This letter is to inform you of the latest development concerning
the liquidation plan proposed by Mid-Continent Resources, and to
summarize our past discussions about the plan. On March 1, 1994,
Jim Holden told me that he will attempt to drop the personal
liability provision from the liquidation plan. He stated he
would get back to me this week on whether he will definitely
eliminate this aspect from the plan.
During the Board' s January 1994 meeting, we held an executive
session to allow me to explain and analyze the newest liquidation
plan proposed by Mid-Continent Resources, which is essentially
the plan now submitted for vote. The Board' s response in no
uncertain terms was that the plan was unacceptable and that the
Board wanted me to pursue the personal liability suit and fore-
closure of the rockdust plant.
I advised the Board about the risks involved in not supporting
the liquidation plan and relying instead on the personal liabil-
ity suit. These risks included the possibility of losing the
personal liability suit and the possibility of interim mainte-
nance of -the site not being performed because of lack of funds.
The Board' s response again was to accept these risks and go forth
with the personal liability suit and to pursue foreclosure of the
rockdust plant.
In February, I informed the Board that voting on the liquidation
plan must be done by March 16. I advised you that if the Board
rejects the plan, there were two possibilities: ( 1) the plan
would be rejected and straight liquidation under Chapter 7 would
occur, with the Board only receiving the proceeds from the
rockdust plant; or ( 2) the plan could get confirmed despite the