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Ms . Deborah Quinn <br /> November 6 , 1996 <br /> Page - 4 <br /> the property assessed under Schedule 7863 , 7864 or 2487 . <br /> The principal problem is that most of the value in the <br /> personal property was in the longwall equipment, conveyors, and <br /> other items that remained under ground, and are now sealed in the <br /> mine . <br /> The property that could be salvaged and sold was <br /> committed under the Bankruptcy Plan to a salvage contract with <br /> Machinery and Equipment Company/A. M. King, a joint venture with <br /> provision for disposition of net proceeds after costs to the <br /> salvage contractor and to the bankrupt estate . A substantial <br /> part of the property that was salvaged has been removed from the <br /> Prep Plant site and is stored at the Unit Train Loadout site East <br /> of Carbondale in Garfield County. This property is being sold on <br /> a piece-by-piece basis by the salvage contractor under the <br /> bankruptcy approved salvage plan as amended to authorize <br /> withholding of distributions to cover costs required to be paid <br /> from salvage proceeds under the contract . The bankrupt estate <br /> receives 80'1 of these net proceeds, which could be assigned to <br /> Pitkin County to be paid when received in lieu of a Treasurer' s <br /> Distraint on this property. This, as I see it, would meet the <br /> test under Section 6 . 3 of Bankruptcy Liquidation Plan for <br /> preferential distribution to the County for taxes . <br /> The deficiency would then be payable from sale proceeds <br /> of assets of the bankrupt estate assets after payment of taxes <br /> under Schedule 7863 , payment of remaining balances under Section <br /> 6 . 3 . 4 of the Bankruptcy Plan (69e to DMG, 2301 to Unsecured <br /> Creditors, and 8% to environmental costs, plus Trustee' s costs <br /> and expenses) . <br /> The escrowed Telluride sale money, remaining "Surface <br /> only" land sales (estimated to be around $200, 000) Prep Plant <br /> sales estimated to be not less than $1, 400, 000, Coke Oven Trac` <br /> sales, and Unit Train Loadout sales, together with personal <br /> property realization will be sufficient to give assurance to the <br /> County that the taxes will be paid in full as well as paying the <br />