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The marketing program was conducted by the Mergers and <br /> Acquisitions Division of Arthur Andersen & Co. in New York City. <br /> Beginning in March 1991, more than two hundred potential purchasers <br /> were contacted regarding a possible sale of the Mine, including <br /> domestic and foreign mining companies, domestic and foreign steel <br /> producers, and financial investor groups with a possible interest <br /> in such an acquisition. In addition, public announcements <br /> regarding the sale of the Mine appeared in trade publications such <br /> as "Coal Outlook" and "The National Review of Corporate <br /> Acquisitions. " <br /> Of the potential purchasers contacted, 91 companies <br /> requested copies of a Confidential Information Memorandum prepared <br /> by the Debtor which described the Mine, the costs of operating the <br /> Mine, the market for the coal production, and other topics of <br /> interest to potential purchasers. Price terms were not specified <br /> but instead were to be reached through a competitive bidding <br /> process. <br /> After review of the confidential memorandum, two <br /> companies expressed interest in further investigating a possible <br /> purchase of the Mine. These companies met with management of the <br /> Debtor and toured the facilities. In August 1991, these companies <br /> submitted bids to purchase the Mine. The Debtor accepted a <br /> $6,000,000 cash offer from one of the companies, A.T. Massey Coal <br /> Company ( "Massey" ) , a coal company located in West Virginia. <br /> However, the bid was subject to final approval by the Board of <br /> Directors of Massey's parent corporation, Fluor Company, which <br /> disapproved the transaction in November 1991. Negotiations with <br /> Massey then terminated. The Debtor then resumed negotiations with <br /> the other company which had submitted a bid in August, but that <br /> company had financing contingencies which could not be satisfied. <br /> In August 1991, Sanwa declared its loan in default and <br /> suspended further advances. Mid-Continent Minerals, Inc. financed <br /> the mothball program through the Fall, but thereafter was unable <br /> and unwilling to continue financing the mothball program since it <br /> was clear that Minerals would realize nothing from a sale of the <br /> Mine. <br /> The Debtor filed a voluntary Chapter 11 petition in <br /> bankruptcy in the United States Bankruptcy Court for the District <br /> of Colorado on February 12, 1992. Bankruptcy reduced the Debtor's <br /> monthly expenses by suspending catch-up payments to the federal <br /> government on a federal mineral lease, catch-up payments to Public <br /> Service Company on a pre-petition power contract, and payments on <br /> equipment leases and equipment installment purchase contracts. <br /> Additionally, the Debtor believed that bankruptcy would expand the <br /> possibilities for bridge financing of the mothball program pending <br /> sale. Further, the Debtor concluded that if a sale agreement was <br /> not reached, it would be necessary to terminate the mothball <br /> program and commence a program to salvage mine equipment, reclaim <br /> 7 <br />