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a current basis. With these adjustments, the obligations on all <br /> Sanwa loans to the Debtor and its affiliates totalled $22,657,245 <br /> as of December 31, 1993. <br /> Of the amount owed to Sanwa on December 31, 1993, <br /> $7,652,230 is owed to Sanwa by Coal & Coke for funds drawn by Coal <br /> & Coke on its revolving credit line. Because the credit line is <br /> revolving, all amounts borrowed by Coal & Coke prior to the <br /> Debtor's bankruptcy have been repaid, and all amounts currently <br /> owed on the revolving line have been borrowed while the Debtor has <br /> been in bankruptcy. While the Debtor guaranteed and cross- <br /> collateralized the Coal & Coke credit line prior to its bankruptcy <br /> filing, the Debtor believes that post-petition draws on the line by <br /> Coal & Coke do not represent a claim against the Debtor's <br /> bankruptcy estate. <br /> Accordingly, the Debtor believes that while Minerals, <br /> Coal & Coke, and Mineral's other subsidiaries owe $22,657,245 to <br /> Sanwa as of December 31, 1993, the claim against the Debtor has <br /> been reduced to $15,005,015 as of that date. <br /> E. Events Preceding Bankruptcy Filing <br /> In August 1990, a fire in a coal seam resulted in closure <br /> of the Mine, which strained the Debtor's finances to the breaking <br /> point. Although the fire was put out at considerable expense and <br /> the Mine was briefly reopened, the Debtor soon ran out of cash. On <br /> January 25, 1991, due to the Debtor's lack of operating funds, Mine <br /> operations were suspended. <br /> The Debtor determined that sale of the Mine to a new <br /> operator was in the interests of all parties. Accordingly, the <br /> Debtor engaged in an intensive marketing program and maintained the <br /> Mine in an idled standby status or "mothball" status which would <br /> permit the Mine to be reopened by a new operator. Mothballing <br /> operations provided pumping and ventilation without which the Mine <br /> would fill up with water and methane gas. Additionally, frequent <br /> inspection of Mine supports was required to ensure the stability of <br /> underground Mine facilities. Failure to pump, ventilate and <br /> inspect the Mine would result in irreparable damage to the Mine and <br /> would prevent any successor operator from economically operating <br /> the Mine. Mothballing the Mine also maintaining Mine equipment and <br /> continuing monthly payments on certain mineral leases, equipment <br /> leases, and contracts. This program cost approximately $200,000 <br /> per month. Most of the cost of this program was funded through <br /> advances from Sanwa. <br /> All sales negotiations were premised on sale of the <br /> Mine to a new operator. Therefore, "mothballing" the Mine was <br /> essential to maintain the Mine in an operable condition. <br /> 6 <br />