Laserfiche WebLink
UNITED STATES DISTRICT COURT FOR THE <br /> DISTRICT OF COLORADO IN BANKRUPTCY <br /> In re: ) <br /> MID-CONTINENT RESOURCES, INC. ) Case No. 92 11658 PAC <br /> T.I.N. 36-1475193 ) (Chapter 11 ) <br /> ) <br /> Debtor. ) <br /> REDLINED VERSION OF DEBTOR'S SECOND AMENDED PLAN OF LIQUIDATION, <br /> WITH SUMMARY OF PRINCIPAL REVISIONS <br /> Mid-Continent Resources, Inc. , debtor in possession, <br /> pursuant to the Court's Minute Order dated November 29, 1993, <br /> submits a redlined version of its Second Amended Plan of <br /> Liquidation (the "New Plan" ) , dated January 18, 1994 . The redlined <br /> version is attached hereto. <br /> Summary of Plan Revisions <br /> The following is a summary of the principal revisions to <br /> the New Plan: <br /> 1. Distributions to general unsecured creditors. Under <br /> the former plan, general unsecured creditors received nothing until <br /> the distribution of funds allocated for mine reclamation and <br /> environmental remediation was completed. Following that <br /> distribution, Sanwa Business Credit Corporation ( "Sanwa" ) received <br /> 77% of the remaining net liquidation dollars, and unsecured <br /> creditors received 23% of the net liquidation dollars. The <br /> Debtor's liquidation projections indicated that unsecured creditors <br /> would get about 2 cents on the dollar. If those liquidation <br /> projections proved to be optimistic, unsecured creditors might get <br /> nothing. <br /> The New Plan increases the distribution to general <br /> unsecured creditors to 5% of their allowed claims. Moreover, the - 4 <br /> distribution to unsecured creditors now occurs simultaneously with <br /> distributions for mine reclamation <br /> ion, <br /> and occurs ahead of any distributions to Sanwa. <br /> 2. Release of Debtor's Corporate Affiliates. The <br /> former plan provided for a consensual release of the Debtor's <br /> corporate affiliates by accepting unsecured creditors holding $10 <br /> million of unsecured claims. Such release became effective on the <br /> effective date of the plan. Since the ability to make any <br /> distribution to unsecured creditors was conditioned on the success <br /> of the Debtor's liquidation, unsecured creditors could deliver <br /> releases and get nothing in return. <br />