1997-04-29_GENERAL DOCUMENTS - C1981017 (2)

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the effective date was thirty days following entry of the final order confirming the Plan, which would have been 1�tay 11, 1994. 8. As of the effective date of the Plan, Pitkin County's claim totaled $582.242.38,as more specifically set forth in Exhibit C,attached. 9. Article III Section 3.1 of the Plan provides that the Plan leaves unaltered the legal, equitable and contractual rights of the Class I claims for property taxes, and thus statutory interest has accrued on unpaid taxes under applicable Colorado law. 10. Fitkin County has not pursued its legal rights against the real and personal property in reliance upon the Plan, that payments would be made by the Trustee as property was sold,as required by the Plan. 11. The Plan established a Creditor's Trust under Section 6.2.2 and provided that property transferred pursuant to the Creditor's Trustee's power of attorney would be free and clear of liens and claims except the statutory lien of real property taxes. All creditors of the debtor were enioined from efforts to collect claims on property subiect to the Creditor's Trustee's power of attorney. Once property was sold pursuant to the Creditor's Trustee's power of attorney, the Net Proceeds were to be distributed in accordance with provisions of the Plan. 12. Net proceeds tinder the Plan are defined at Section 1.26 of the Plan, meaning the cash proceeds of property sold under the Plan after payment of property taxes and other specified items. 13. Section 6.3 of the Plan specifically provides that the Creditor's Trustee shall pay property tax claims in Class I from the proceeds of the sale of property on which the taxes are owed. Only after payment of property taxes would "Net Proceeds" be distributed to other classes of creditors. 14. Upon information and belief, and contrary to the explicit provisions of the Plan, the Creditor's Trustee has sold or caused to be sold personal property and improvements subject to Fitkin County's taxes, the Trustee has received proceeds from such sales sufficient to pay the taxes due, but the Trustee railed to pay any taxes on personal property or improvements from the proceeds of sales, and instead proceeded to distribute such proceeds to other creditors. 15. Subsequent to confirmation of the Plan, Fitkin County has received requests from the Debtor and the Trustee to issue certificates of taxes due on various parcels of real property located within Fitkin County and subject to the Flan, in order to sell the property. 16. A total of only S 1 6.7 52.22 in taxes and interest has been paid to date, all in connection with the real property sales. A total of S724.426.19 is still due, as of April 30, 1997. See Exhibit D.attached hereto and incorporated by this reference. 17. During the Spring of 1996, Fitkin County was advised by the Debtor's General Counsel that most of the personal property_ and improvements had been sold. see letter of April 10. 1996 front Robert Delaney to Tom Isaac, copy attached as Exhibit E and incorporated by this reference.