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Under the M&E contract, the first $1 million of sales, <br /> net of expenses, are divided evenly between the Debtor and M&E. <br /> The next $2 million of net sales proceeds are divided 80% to the <br /> Debtor and 20% to M&E. Net sales proceeds over $3 million are <br /> divided 60% to the Debtor and 40% to M&E. The commission structure <br /> generally was designed to reward M&E for good results, by <br /> increasing its commission as sales reached higher levels. The <br /> larger commission paid on the first $1 million of net sales was <br /> based on the fact that M&E was committing substantial capital to <br /> the equipment program, and should be permitted to realize a return <br /> on capital through a sharing of the first $1 million of net sales. <br /> Accordingly, to date the sales of equipment have yielded <br /> little return to the Debtor. Most of the expenses associated with <br /> recovering and reselling the equipment are incurred and recouped by <br /> M&E in the early stages of contract performance, and the sales <br /> commission to M&E is more favorable than will occur later in the <br /> contract. The net to the Debtor's bankruptcy estate, through <br /> December 31, 1993, has totalled only $251, 929. <br /> Despite the relatively small net to date, the Debtor <br /> anticipates substantial net proceeds to be realized for the <br /> bankruptcy estate as the equipment program continues. M&E <br /> estimates that a total of about $3 million of gross sales will be <br /> realized, with the balance of the sales occurring over the next <br /> three or four years. <br /> Based on these estimates, and the terms of the M&E <br /> contract, the Debtor estimates that the future net to the estate <br /> from equipment sales will be approximately $1,200,000. <br /> Carbondale Industrial Park. The property is a 14 acre <br /> parcel containing a machine shop, a truck repair shop, and a truck <br /> wash facility. The property was appraised in 1993 at $1,231,300. <br /> The Town of Carbondale has offered to purchase the property for <br /> $1, 125,000. <br /> Rail Loadout Site. The property contains the Debtor's <br /> offices, a large coal storage structure that, with some modest <br /> refurbishing, is suitable for sale as a warehouse, and a train <br /> loadout facility. The property has been appraised at $747,000. <br /> Informal estimates of value from real estate brokers contacted by <br /> the Debtor suggest that the value may be higher than the value as <br /> appraised, perhaps in excess of $1 million. <br /> Coke Oven Parcel. The property is a triangular parcel of <br /> about 8 acres. It is the site of coke ovens built at the turn of <br /> the century which have been designated a historic site. The <br /> property is near the Town of Redstone. Despite some legal <br /> restrictions on development, the Debtor believes it has some <br /> development potential, perhaps as a site for a service station, or <br /> 35 <br />