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` Cheryl A. Linden <br /> January 18, 1994 <br /> Page 2 <br /> concede this point because the funds are not available. We do <br /> anticipate that sales of several parcels will occur this year <br /> which will permit the timely performance of the reclamation plan <br /> during 1994 and into 1995. <br /> Section 4 .3.4 of the Plan calls for the DMG and MLRB to <br /> negotiate a reclamation schedule with Resources which would <br /> provide for the completion of principal reclamation activity at <br /> the Mine Site prior to December 1, 1996. As you know, Resources <br /> and the DMG met this morning to id cuss a reclamation schedule, <br /> and it was reported to me that the DMG and Resources are not far <br /> apart regarding a realistic schedule. <br /> We believe that the reclamation schedule is important <br /> because it would dictate when funds will be needed and the amount <br /> of funds that will be needed from time to time. Section 4 .3.4 of <br /> the Plan requires funds to be provided to the MLRB in time to <br /> permit timely performance of the Reclamation Plan according to <br /> the reclamation schedule to be negotiated. We would anticipate <br /> reaching agreement of this schedule over the next month or six <br /> weeks, prior to confirmation of the Plan by the Bankruptcy Court. <br /> To give teeth to the reclamation schedule, the Plan <br /> provides that the DMG is free to proceed with its litigation <br /> against corporate affiliates any time that the funds provided by <br /> Resources under the Plan fall behind the requirements of the <br /> reclamation schedule. <br /> We also have added a subrogation provision in Section <br /> 6. 7 of the Plan, which permits any person to advance funds to <br /> make any distribution provided under the Plan. The person making <br /> such advance then would become subrogated to the position of the <br /> class or classes of creditors receiving such funds, after all <br /> distributions to such class or classes have been completed. <br /> Thus, for example, if the liquidation of assets was lagging <br /> behind what was required to be distributed under the reclamation <br /> schedule, Mid-Continent Minerals or, perhaps, Sanwa Business <br /> Credit Corporation (the senior secured creditor) could loan the <br /> funds needed to make the distribution in order to keep the <br /> litigation on hold. <br /> Resources desires to proceed with these matters in a <br /> responsible manner. I hope that these revisions will permit the <br /> MLRB to support the Plan, so that the bankruptcy can be brought <br /> to a conclusion this Spring. This would permit all concerned to <br /> get on with the task of reclaiming the mine. The Board's <br /> alternative is to continue the litigation against the corporate <br /> parent and officers and directors, which will frustrate the <br />