1994-02-06_GENERAL DOCUMENTS - C1981017

• 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
• Archive: No

The payments required to be made by the Debtor on the
Effective Date include (i) payment of the Class 3 claim of
Caterpillar, estimated in the amount of $37,686; (ii) payment of
$7,000 to Class 5 reclamation claimants, on account of a deed of
trust securing reclamation of the Mid-Continent Quarry; (iii)
payment of Class 7 (general unsecured claims not exceeding $200) ,
estimated in the amount of $19, 303; (iv) payment of Class 8
(general unsecured claims exceeding $200 but not exceeding
$10,000) , estimated in the amount of $30,741; and (v) payment of
administrative claims estimated in the amount of $240,000. The
total amount of cash distributions on the Effective Date thus is
estimated at $334,730.
To the extent that any of the above claims are subject to
disputes on the Effective Date, the Debtor shall pay the undisputed
claims, reserve funds for the disputed claims, and distribute the
balance of the funds to the Creditors' Trust. After any such
disputed claims have been allowed and paid, the Debtor shall
transfer any excess reserve funds to the Creditors' Trust.
The Debtor estimates that it will have the funds
necessary for the cash payments described above on or before
confirmation of the Plan. As of January 17, 1994, the Debtor's
cash on hand totalled $335,205. See Section IV.A, "Projection of
Liquidation Proceeds, " on page 34 below.
2. Executory Contracts
The Bankruptcy Code generally gives discretion to a
debtor in possession to assume or reject executory contracts and
unexpired leases, and to assign those contracts and leases which
are assumed. The effect of such assumption and assignment is to
require the assignee to perform the contracts or leases according
to their terms. The Bankruptcy Code provides certain protections
to the other contracting party, in the form of adequate assurance
of future performance and cure of any existing defaults.
The Debtor already has rejected a number of contracts and
leases, including all mineral leases, a lease of roof bolting
equipment, and a lease of telephone equipment.
Under the Plan, the Debtor assumes the following leases
or executory contracts: (i) the M&E Contract; (ii) a lease of a
truck wash facility to Pitkin Iron dated March 1, 1986; (iii) a
lease of the Fabrication Shop to Pitkin Iron dated February 1,
1991; (iv) a quarry operating agreement with Pitkin Iron dated
November 27, 1985; (v) a mine service agreement with Pitkin Iron
dated July 5, 1988; and (vi) a lease of unpatented mining claims on
the Mid-Continent Quarry from CF&I Steel Corporation. The Debtor
rejects all other executory contracts and unexpired leases that
have not been otherwise assumed or rejected as of the Effective
Date.
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