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1994-02-06_GENERAL DOCUMENTS - C1981017
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1994-02-06_GENERAL DOCUMENTS - C1981017
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2/1/2021 10:31:42 AM
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DRMS Permit Index
Permit No
C1981017
IBM Index Class Name
GENERAL DOCUMENTS
Doc Date
2/6/1994
Doc Name
Case No. 9211658 Debtors Disclosure Statement for Second Amendment Plan of Liquidation
Permit Index Doc Type
General Correspondence
Media Type
D
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No
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claims were scheduled by the Debtor: an open account in the amount <br /> of $1,394, 102; a promissory note in the amount of $2,039,937; and <br /> another promissory note in the amount of $254,302. The Class 10 <br /> claims shall be voluntarily subordinated to Class 9 claims and <br /> shall receive or retain nothing under the Plan. This provision <br /> does not affect any claims of Pitkin Iron arising from services <br /> performed after the filing of the Debtor's bankruptcy petition. <br /> The Debtor has had informal discussions with the Class 10 claimant <br /> and anticipates that the claimant will agree with the treatment of <br /> Class 10 claims as herein described. For a description of such <br /> services, see Section I.C, "Intercompany Relationships, " on page 2 <br /> above. Such claims are treated as administrative claims under the <br /> Plan and are paid in full, subject to allowance by the Court. <br /> Pitkin Iron's claim for unpaid services was $205,775 on December <br /> 31, 1993. <br /> 11. Class 11 -- Former Shareholders <br /> Class 11 consists of the allowed claims arising from the <br /> sale to the Debtor of the Debtor's common stock by former <br /> shareholders, including (i) Beverly Dyrness; (ii) Carl Strauss; and <br /> (iii) Joseph E. Harker, Ralph A. Harker, Jeannette Howcroft, Paul <br /> P. Harker, Virginia A. Woods, and Ralph A. Harker, Joseph E. <br /> Harker, and Idaho First National Bank, Boise, Idaho, as Trustees of <br /> the Virginia P. Harker Grandchildren Trust (the "Harkens" ) . <br /> These former shareholders of the Debtor hold promissory <br /> notes which were issued by the Debtor to repurchase their shares. <br /> These transactions date back ten years or more. The Harkens have <br /> a judgment against the Debtor in the approximate amount of <br /> $1,800,000. Dyrness' claim was scheduled by the Debtor in the <br /> amount of $155,149 and Strauss' claim was scheduled in the amount <br /> of $112,000. Neither claim has been reduced to judgment. <br /> Each Class 11 claim is subordinated to Class 9 claims <br /> (general unsecured claims) because of 11 U.S.C. S 510(b) , which <br /> subordinates a claim "for damages arising from the. . .sale of (a <br /> security of the debtor] . . . . " Each Class 11 claim shall be paid <br /> the sum of $1.00 by the Debtor on the Effective Date. <br /> 12. Class 12 -- Claims of Mid-Continent Minerals <br /> and Related Persons <br /> Class 12 consists of the allowed claims of (i) the <br /> Debtor's 100% shareholder, Mid-Continent Minerals, Inc. ; (ii) <br /> shareholders of Minerals, including Robert Delaney, John A. Reeves, <br /> Sr. , Donald J. Joyce, Sr. Thomas E. Gibbs, and Leonard M. Ring; and <br /> (iii) subsidiaries of Minerals, including Carbondale Mine Services, <br /> Inc. <br /> Minerals loaned substantial amounts to the Debtor in the <br /> years preceding the Debtor's bankruptcy filing, mainly to finance <br /> 26 <br />
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