_GENERAL DOCUMENTS - C1981017 (249)

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FROM -.NATURAL RESOURCES SEC. 303 866 355e 1995, 12-13 14.36 #712 P.06/07 Cheryl A. Linden December 13, 1995 - Page 4 objection thereto (my understanding ,is that the matter is act for hearing in January) . I Gan only refer back to my letter to you dated October 12, 1995, in which I advised that Lou LaGiglia "is prepared to provide additional infOrmati.on to the DMG's reasonable eatisfactio.n. We suggest that a follow-up meeting occur between Mr. LaGiglia and the DMG focusing on the accounting (for pre- confirmation reclamation work) , to make sure that the DMG understands what already has been provided and that Mr. LaGiglia understands any additional areas of concern. Although I do not represent Pitkin Iron, perhaps this process could lead to a settlement of the pending objection to Pitkin Iron- a claim. " MCk remains willing to discuss this matter. Status of Land Exchanges Your letter requests the status of the USFS land exchanges. I previously advised that the exchange of the Wildcat parcel had closed, netting approximately $346, 000, which, was used to clear accumulated real estate taxes, as contemplated by the Bankruptcy Plan. The exchange of the Beckett parcel recently closed, for a gross sale price of $62S, 000 . The property is subject to a lien in favor of Mabel Patgantaras (Class 2 under the Bankruptcy Plan) . section 4 .1 of the Bankruptcy Plan requires that Pateantaras be paid in full and in cash upon Sale of the real property securing her claim. Lou LaGiglia anticipates that this will reduce the net from the transaction by about $40, 000 , 1 will ask Mr. LaGiglia to provide the DMG with an accounting regarding the Beckett transaction, and also will ask him to address the timing of cash distributions from the two completed exchanges. I anticipate that the proceeds will be distributed well in advance of the next reclamation season. I also am advised that the two remaining exchanges which have been negotiated will closed on or before March 19, 1996. XCR's Requents of the Division Since the inception of the Bankruptcy Plan, the DMG has accumulated substantial amounts of funds which have been distributed by Mr. LaGiglia. As a result of the ongoing USFS exchanges, substantial additional funds will be available prior to the onset of the 1996 reclamation season. since the DMG -has rsot responded favorably to MCR'ts proposal to borrow funds from Sanwa to complete the environmental distributions contemplated by the Bankruptcy Plan, it appears that it will be necessary to fund the balance of those distributions from ongoing property sales. With the completion of the LISPS S'd db5SW 18 NM-10H Wd60_ati SG, Et 33Q