1994-02-15_GENERAL DOCUMENTS - C1981017 (2)

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Pete F.H.Carpenter FRFiELD AND Mobs PC. c C.Fuller Chadttao H.Carpenter r John Frew Howard Holine ATTORNEYS AND COUNSELORS AT IAW Gregory C.Smnh Robert S.Slosky James L.Stan John M Tanner Michael M.McKmstry Neil T.Duggan Jac K.Sped ing Bnan S.Tooley Robert L.Loeb,Jr. One Norwest Center, State 2400 Alice D.Madden Daniel R.Frost Dougi1700 Lincoln Street Brent AJ .Becker Stephat W.SeifertWaite steph Mary Jo Gloss Denver, Colorado 80203-4524 Thomas M.Pierce Robert SA.aver Telephone: (303)830-2400P Holmes T Cut Rows,III• JNMISdver Suzannen R.Kalutlnewrz Thomas P.Kearns Telecopier: (303)830-1033 JOB'E. Bohling Rocoo A.Dodson 1 l Li Of Counsel Mary E.Moser George C.Keely Christine K.Thin Robert L.Knoas,Jr. Brent T.Johnson Gien E.Grunwald Craig t Stephen x.Leonhha dt February 9, 1994 F EB 151994 Not adinned m C*bra& All Unsecured Creditors of Mid-Continent Resources, Inc. Re: Debtor's Second Amended Plan of Liquidation Dated February 1, 1994 We are the attorneys for the Official Committee of Unsecured Creditors serving in the Chapter 11 bankruptcy case of Mid- Continent Resources, Inc. Enclosed with this letter is a copy of Mid-Continent's Second Amended Plan of Liquidation dated February 1, 1994. This Plan has been negotiated by the Debtor, the Committee, Sanwa Business Credit (Mid-Continent's major secured creditor) , and the State of Colorado reclamation authorities. The first goal of everyone involved in this case was to sell the mine as a going concern. All these efforts, however, failed. Therefore, everyone's attention has since been devoted to selling Mid-Continent's assets piece by piece for the most money possible. The proceeds of those sales are to be used to make payments under the Plan. The Plan represents a compromise among the major creditor groups in the case. Basically, mine reclamation will be accomplished, unsecured creditors will receive a small dividend, and Sanwa will subordinate its position to allow both of these things to occur. While the dividend to unsecured creditors is small, the Committee believes that it is better than what would be achieved under any other circumstances. The Committee believes that it is important for the class of unsecured creditors to vote in favor of the Plan, and urges you to vote to accept the Plan. Should you have any questions, feel free to call the undersigned. Very truly yo rs Stephen W. Seifert of FAIRFIELD AND WOODS, P.C. SWS:sh