1994-02-06_GENERAL DOCUMENTS - C1981017

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The M&E contract shall be assigned to the Creditors' Trust. The Mid-Continent Quarry lease shall be assigned to a purchaser of the quarry at the time of sale. In the event that the quarry is not sold, the lease is freely terminable by its own terms. The Plan provides that the agreements with Pitkin Iron will be terminated in accordance with their terms. In each instance, such contractual termination is more advantageous to the Debtor's estate than rejection and termination under the Bankruptcy Code. Pitkin Iron's lease of the truck wash facility, located at the Carbondale Industrial Park, is a lease of non-residential property by the Debtor to Pitkin Iron. Under the Bankruptcy Code's provisions pertaining to rejection of such leases, Pitkin Iron would be entitled to remain in possession of the facility after rejection. This would frustrate a proposed sale of the Carbondale Industrial Park to the Town of Carbondale for the sum of $1, 125,000. Under the terms of the lease, the Debtor is entitled, to terminate the lease upon payment to Pitkin Iron of its capital investment of the truck wash facility, depreciated over a 15 year period from 1986. By terminating the lease in accordance with its terms, the Debtor will be required to pay approximately $65, 157 to Pitkin Iron, but will then be entitled to dispossess Pitkin Iron and close a proposed $1,125,000 sale. Similarly, Pitkin Iron's lease of the Fabrication Shop is a lease of non-residential property. The mine service agreement includes a non-residential lease of the Rockdust Plant, and the quarry operating agreement includes a non-residential sublease of the Mid-Continent Quarry. Pitkin Iron would be entitled to remain in possession of these properties if termination was accomplished under applicable Bankruptcy Code provisions. By its terms, the Fabrication Shop lease is terminable by the Debtor upon 60 days' notice; the mine service agreement is terminable by the Debtor upon 10 days' notice; the quarry operating agreement is terminable by the Debtor upon 60 days' notice if Pitkin Iron has failed to quarry stone during the current calendar year, which is the case in 1993. There are no payments by the Debtor required to achieve these contractual terminations. 3. Allowance of Claims In a Chapter 11 case, the schedules filed by a debtor constitute prima facie evidence of the validity and amount of creditors' claims, unless those claims are scheduled as disputed, contingent, or unliquidated. A proof of claim filed by a creditor will override the claim as scheduled by a debtor. Pursuant to order of the Bankruptcy Court, the last date for filing claims in the case was November 29, 1993. 33