1997-07-31_GENERAL DOCUMENTS - C1981017 (2)

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24. Plaintiffs admit that Section 6.2 of the Plan is as stated in paragraph 75, admit that section of the Plan provides for liquidation. and except as otherwise admitted, deny the averments of paragraph 75. 25. Plaintiffs admit the averments of paragraph 76, and further state that Section 6.2.2 only permits the Creditors' Trustee to retain and distribute "Net Proceeds," and that Net Proceeds are defined in Section 1.26 as the cash proceeds of property sold under the PIan. after payment of. inter alia, property taxes. and that any distribution by the Creditors' Trustee of cash proceeds without paying property taxes due on the property sold is improper. 26. Plaintiffs admit the averments of paragraph 77. 27. Plaintiffs admit the averments of paragraph 78, and again state that Net Proceeds are cash proceeds after payment of property taxes, and that Section 6.3 gives the Trustee no discretion to distribute any proceeds before payment of the taxes from the proceeds of property on which the property taxes are owed. Plaintiffs further state that the only discretion afforded by Section 6.3 with respect to payment of property taxes when the property sold is that the distribution of funds to the taxing entity need not be made immediately. but may be made after funds are accumulated, only in order to avoid expenses associated with insubstantial distributions, as set forth in the Plan. Section 6.3.6. There is no discretion for payment of any other class of claims prior to the payment of taxes due on the property which was sold. 28. Plaintiffs deny the averments of paragraph 79. 29. Plaintiffs admit the averments of paragraph 80. 30. Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 81. 31. Plaintiffs admit that Section 4.3.5 states %what it states. and except as so admitted, are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 82. 32. Plaintiffs admit the averments of paragraphs 83 and 84. 33. Plaintiffs deny that the accounting it has requested from Defendants is impossible to perform without an accounting from DMG. and state specifically that the accounting requested by Plaintiffs involves only an itemization of what property and equipment subject to the lien for taxes under Pitkin County Tax Schedule R004062 has been sold to date. when such sales could, and what taxes should have been paid with respect to those sales. Except as so admitted. Plaintiffs are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 85. 4