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In September 1992, the Debtor obtained Court <br /> authorization to sell the Equipment free and clear of liens in <br /> accordance with the terms of the M&E Contract. M&E has distributed <br /> catalogs of saleable Equipment to hundreds of potential purchasers. <br /> Pursuant to the terms of the M&E Contract, M&E is required to sell <br /> the Equipment for no less than certain minimum prices which have <br /> been filed under seal with the Court. The minimum prices are dealt <br /> with as confidential trade information in the Debtor's bankruptcy <br /> case. <br /> All gross sales proceeds are deposited directly into <br /> federally-insured bank trust accounts specifically established <br /> under the terms of the M&E Contract. On or before the tenth of <br /> each month, M&E submits a detailed statement to the Debtor showing <br /> all monies paid out, costs incurred under the M&E Contract during <br /> the previous month, sales during the previous month, and the amount <br /> of M&E's commissions retained pursuant to the M&E Contract. After <br /> deducting its costs, M&E is compensated out of net sales proceeds. <br /> M&E receives 50% of the first $1,000,000; 20% of the next <br /> $2,000,000; and 40% of any net sales proceeds in excess of <br /> $3,000,000. Ten percent of all commissions due to M&E, up to a <br /> maximum of $100,000, are set aside in a separate federally-insured <br /> interest bearing trust account to ensure M&E's satisfactory <br /> performance. Upon completion of on-site dismantling of the surface <br /> structures at the Mine site, M&E will be entitled to 35% of this <br /> account including earned interest. M&E will be entitled to the <br /> balance of the this account including earned interest upon <br /> completion of the work under the M&E Contract, but in no event <br /> beyond the five-year term of the M&E Contract. The five-year term <br /> of the M&E Contract began on September 1, 1992. <br /> M&E makes monthly reports to the Debtor regarding the <br /> collection of funds based on the ongoing sales of the Equipment. <br /> Through December 31, 1993, equipment sales under the M&E Contract <br /> have netted $251,929 for the estate. <br /> Projections of amounts to be realized from the equipment <br /> liquidation program are set forth in Section V.A, "Projection of <br /> Liquidation Proceeds, " on page 34 below. <br /> C. Sales of Real Property <br /> The Debtor obtained Court authorization to employ Holiday <br /> West Realty, Inc. of Glenwood Springs, Colorado (the "Broker" ) in <br /> accordance with the terms of an exclusive listing agreement to sell <br /> a 160 acre property known as the Pasture Tract. The Debtor desired <br /> to employ the Broker based on the Broker's real estate expertise <br /> and familiarity with sales of mountain properties in the same <br /> geographical area. The exclusive listing agreement provided for a <br /> listing price of $180,000, a sales commission of 7% and a six month <br /> exclusive listing period. The Pasture Tract sold in December 1992 <br /> 11 <br />