DAKOTA MINING CORP
8-K, 1998-06-08
GOLD AND SILVER ORES
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 Current Report
                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


                          Date of Report: May 21, 1998


                            Dakota Mining Corporation
             (Exact Name of Registrant as Specified in its Charter)


                            Canada 0-17583 84-1094683
     (State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
                      of Incorporation) Identification No.)


                            1560 Broadway, Suite 880
                             Denver, Colorado 80202
               (Address of Principal Executive Offices) (Zip Code)


       Registrant's telephone number, including area code: (303) 573-0221      


                                 Not Applicable
          (Former Name or Former Address, if Changed Since Last Report)



<PAGE>


Item 3.  Bankruptcy or Receivership

         Although  Dakota  itself has not  initiated  or become  the  subject 
         of proceedings  under the  Bankruptcy  Code or any other  state or
         federal law, two of its subsidiaries,  USMX of Alaska Inc.  ("USMXAK")
         and USMX Inc. ("USMX"),  filed for protection under Chapter XI of the 
         Bankruptcy Code in the United States Bankruptcy Court for the District
         of Colorado on May 21,  1998.  USMXAK  is the sole  gold  producing  
         subsidiary  of Dakota. USMXAK and USMX continue to operate their 
         respective businesses as debtors in possession pursuant to Chapter XI
         of the Bankruptcy Code, subject to  jurisdiction  of the United  
         States  Bankruptcy  Court.  No trustee or examiner has been appointed.
         See also Item 5 of this report.


Item 5.  Other Events

         The  severe  liquidity  and other  financial  issues as  disclosed and
         discussed in Dakota Mining  Corporation's  ("Dakota" or the "Company")
         February 26, 1998 Form 8-K and April 14,1998 News Release continue and
         the liquidity and financial condition has continued to deteriorate.The
         Company was unsuccessful in selling Company assets,attracting a merger
         partner or securing alternative financing. Dakota and its subsidiaries
         are in default under terms of agreements with their respective
         lenders.However,  creditors,  including  lenders, have not taken  any
         actions against Dakota or its subsidiaries. Among other things, Dakota
         has an interest payment  due  to  the  holders of  their  7.5%
         Convertible Subordinated  Debentures on June 30, 1998 in the amount of
         $640,721 (Cdn.$929,795). The Company does not currently nor expects to
         have the funds adequate to service this payment.

         On May 21,  1998,  two of  Dakota's  subsidiaries, USMX of Alaska Inc.
         ("USMXAK") and USMX Inc.("USMX"), filed in Denver, Colorado, voluntary
         reorganization  under  Chapter  XI of  the Bankruptcy  Code  as  fully
         disclosed  above  in  Item  3.  Neither Dakota  nor  any of its  other
         subsidiaries  have filed  bankruptcy at this time,  although  they may
         determine to do so in the future as a result of their  poor  financial
         condition.  USMXAK is the sole gold  producing subsidiary  of  Dakota.
         Daily  operations  at the Illinois Creek mine are expected to continue
         pending the  submission  of the required documents  to the  bankruptcy
         court, including a reorganization plan which is due within 120 days of
         filing. This action was taken to protect the ability of the Company to
         maximize the value of the assets. USMXAK debtor in possession received
         court  approval to pay from the proceeds account  pre-petition  wages,
         current operating  costs from May 21, 1998 until June 12, 1998,  and a
         management  fee of  $75,000. The  Company  was unable to  fulfill  its
         reporting  requirements to file, among other things, audited financial
         statements  for the period ending  December 31, 1997. As a result, the
         Ontario  Securities  Commission filed a temporary order and hearing to
         cease trading of the Company securities on the Toronto Stock Exchange.
         Dakota does not intend to contest the Commission's  order.  The result
         would be a voluntary suspension of trading in the sharesof the Company
         until such time as the listing requirements can be satisfied.


<PAGE>

         On May 29,  1998, the  State  of South  Dakota  obtained  a  Temporary
         Restraining Order ("TRO") against a subsidiary of Dakota, Brohm Mining
         Corp.  ("Brohm"). The TRO requires  Brohm to continue to operate water
         treatment systems at the Gilt Edge mine in accordance  with state mine
         permits. Pending  a court  hearing  scheduled  for June 5,  1998,  the
         Company intends to comply with this order. The Gilt Edge mine is not
         in operation at this time.

         Dakota's subsidiary, USMX, has received notice from the property owner
         of the Thunder Mountain Joint Venture. The property owner believes the
         Company is in default of the  agreement of which the Company  strongly
         disagrees.

         Christopher M.T. Thompson resigned as Chairman of the Board, effective
         April 21, 1998 on his  acceptance of a position  with N M Rothschild &
         Sons,the secured lender to USMXAK, due to concerns regarding potential
         conflicts of interest. A replacement has not been named.

         C.  Brian  Cramm  resigned  as the Vice  President  of  Finance, Chief
         Financial Officer, and Secretary  effective May 8, 1998. A replacement
         has not been named.

         This document contains forward-looking  information,  which involves a
         degree  of  risk and  uncertainty  due to  various  factors  affecting
         Dakota's   business,  including,   but  not  limited  to,  gold  price
         volatility, ore grade and recovery rates,  exploration results, mining
         and processing conditions and costs, and compliance with regulatory
         and permitting requirements.

Item 7.

Exhibits

          USMX, Inc. Chapter 11 Voluntary Petition
          USMX of Alaska, Inc. Chapter 11 Voluntary Petition          
          USMX of Alaska, Inc. Notice of Stipulation Concerning Consent for 
          the Emergency Interim Use of Cash Collateral
          USMX of Alaska, Inc Stipulation and Consent Regarding Payment of Pre-
          Petition Wages


SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934, the
registrant has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

DAKOTA MINING CORPORATION


June 5, 1998

By: c/s   Alan R. Bell
Alan R. Bell, President
and Chief Executive officer




                         UNITED STATES BANKRUPTCY COURT

                          FOR THE DISTRICT OF COLORADO


In re:                                                     CHAPTER 11
                                                          
USMX OF ALASKA, INC.                                Case No. 98-17143-DEC
Tax I.D. No. 84-1294496                              
                                                              



                     NOTICE OF STIPULATION REGARDING CONSENT
                FOR THE EMERGENCY INTERIM USE OF CASH COLLATERAL



         USMX of Alaska,  Inc.  provides  notice of the attached  Stipulation 
Regarding  Consent for the Emergency Interim Use of Cash Collateral among USMX
of Alaska,  Inc., NM Rothschild & Sons,  Ltd., and D.H.  Blattner & Sons,
Inc.   The Stipulation is entered into pursuant to 11 U.S.C. ss. 363(c)(2)(A).

                                    LeBOEUF,   LAMB,  GREENE  &  MacRAE, L.L.P.



                               By:      _______________________________________
                                                    Carl A. Eklund, #2299
                                                    Bart B. Burnett, #21258
                                                    633 17th Street, Suite 2000
                                                    Denver, Colorado   80202
                                                    Telephone:  (303) 291-2600
                                                    Facsimile:  (303) 297-0422

                                                     ATTORNEYS FOR DEBTORS




                         UNITED STATES BANKRUPTCY COURT

                          FOR THE DISTRICT OF COLORADO


In re:                                                     CHAPTER 11
                                                          
USMX OF ALASKA, INC.                              Case No. 98-17143-DEC
Tax I.D. No. 84-1294496                              
                                                              



                        STIPULATION AND CONSENT REGARDING
                          PAYMENT OF PRE-PETITION WAGES



         USMX of Alaska, Inc. ("USMXAK") (the "Debtor"), NM Rothschild & Sons,
Ltd.  ("Rothschild"),  and D. H.Blattner & Sons, Inc. ("Blattner"), stipulate 
and consent as follows:

         1. On May 27,1998, the Debtor filed an Emergency  Motion for Authority
to Pay  Pre-petition  Wages (the "Wage  Motion"). A copy of the Wage  Motion is
attached hereto as Exhibit A.

         2.  Pursuant to the Wage Motion, the Debtor has  requested  that it be
allowed  to pay  certain  pre-petition  wages, along  with all  related  taxes,
deductions and  withholdings  pertaining to such wages and salaries. In seeking
authority  to pay its  pre-petition  wages,  the Debtor hopes to  maintain  the
continuity of it business and to preserve the morale of its current  employees.
As set forth more fully in the Wage Motion,  the Debtor fears that any delay in
paying its  employees' pre-petition  wages may  adversely  affect the  Debtor's
efforts to reorganize.

         3. The  Debtor, Rothschild  and  Blattner  have since  entered  into a
Stipulation  Regarding  the Emergency  Interim  Use  of  Cash  Collateral  (the
"Stipulation"). Pursuant to the Stipulation,  the parties have consented to the
Debtor's payment of its employees' pre-petition wages.

         4.  Accordingly,  Rothschild  and Blattner do not oppose the immediate
entry of an order  authorizing  payment of  certain  pre-petition  wages of the
Debtor as requested in the Wage Motion.

         WHEREFORE, the Debtor requests that this Court authorize and allow the
Debtor to pay its employees the amounts due for their pre-petition wages, along
with all related taxes, deductions and withholdings pertaining to such wages
and salaries as set forth in the Wage Motion.



<PAGE>



                                                         

         DATED this _____ day of May, 1998.

                                      LeBOEUF,  LAMB, GREENE  &  MacRAE, L.L.P.


                                            By:     ___________________________
                                                    Carl A. Eklund, #2299
                                                    Bart B. Burnett, #21258
                                                    633 17th Street, Suite 2000
                                                    Denver, Colorado   80202
                                                    Telephone:  (303) 291-2600
                                                    Facsimile:  (303) 297-0422

                                                    ATTORNEYS FOR DEBTORS


                                            DAVIS, GRAHAM & STUBBS, LLP


                                            By:     ___________________________
                                                     Glen E. Keller, Jr., #3113
                                                     370 17th St., #4700
                                                     Denver, CO  80202-5647
                                                     Telephone: (303) 892-9400
                                                     Facsimile:  (303) 893-1379

                                                    ATTORNEYS FOR NM ROTHSCHILD
                                                    & SONS, LTD.


                                            FABYANSKE, WESTRA & HART, P.A.


                                            By:      __________________________
                                                     Paul L. Ratelle, #127632
                                                     Jeremiah J. Kearney
                                                     920 Second Avenue South
                                                     Suite 1100    
                                                     Minneapolis, MN 55401
                                                     Telephone: (612) 338-0115
                                                     Facsimile: (612) 338-3857

                                                    ATTORNEYS FOR D.H. BLATTNER
                                                    & SONS, INC.





                         UNITED STATES BANKRUPTCY COURT
                        V O L U N T A R Y P E T I T I O N

 ----------------------------------------=====================================
|                                                                   
                         | For the DISTRICT OF COLORADO
- -----------------------------------------=====================================
|IN RE (Name of debtor, if individual, Last, First, Middle) 
| USMX OF ALASKA, INC. 

|NAME OF JOINT DEBTOR
(Spouse)(Last, First, Middle) |
- ------------------------------------------------------------------------------
| ALL OTHER NAMES used by the debtor in the last 6 years 
|Include married, maiden, and trade names)
|
| ALL OTHER NAMES used by the Joint debtor in the last 6 years
|(Include married, maiden, and trade names)|                                  
|                                                                             
- ------------------------------------------------------------------------------
| SOC.SEC./TAX I.D. NO. (If more than one, state all)
  84-1294496
  
| SOC.SEC./TAX I.D. NO. (If more than one, state all)                
|                                                                             
- ------------------------------------------------------------------------------
| STREET ADDRESS OF DEBTOR (No & street, city, st. & zip code)
| 1560 Broadway, Suite 880                                                    
| Denver, CO  80202                                                           
|                                                  
| STREET ADDRESS OF JOINT DEBTOR (No. & street, city, st. & zip code)
|                                                                   
| COUNTY OF RESIDENCE OR PRINCIPAL PLACE OF BUSINESS  Denver                  
- ------------------------------------------------------------------------------
| MAILING ADDRESS OF DEBTOR (If different from street  address)  

| MAILING ADDRESSOF JOINT DEBTOR (If different from street address)  
  Same as Above 
- -----------------------------------------------------------------------------
| LOCATION OF PRINCIPAL ASSETS OF BUSINESS DEBTOR                             
| (If different from address listed above)                  
|                                                           
| Interior Alaska:                                           
| 320 NW of Anchorage  
 
                             VENUE (Check one box) 
 ----------------------------------------------------------------------------
| X Debtor has been domiciled or has had a residence principal place
| of business, or principal assets in this District for 180 days  
| immediately preceding the date of this petition or for a longer 
| part of such 180 days than in any other District.               
| There is a bankruptcy case concerning debtor's affiliate,       
| general partner, or partnership pending in this District.       
- -----------------------------------------------------------------------------
| INFORMATION REGARDING DEBTOR (Check applicable boxes) |
- -----------------------------------------------------------------------------
| TYPE OF DEBTOR                                             
|     Individual                Corporation Publicly Held                     
|  __ Joint (Husband & Wife)  X Corporation Not Publicly Held
|  __ Partnership            __ Municipality                
|  __ Other                                                  
| NATURE OF DEBT                                                             
|     Non-Business/Consumer   X Business - Complete A&B Below                
|  A. TYPE OF BUSINESS (Check one)                           
|  __ Farming          __ Transportation  __ Commodity Broker
|  __ Professional      X Manufacturing/  __ Construction    
|  __ Retail/Wholesale    Mining          __ Real Estate     
|  __ Railroad         __ Stockbroker     __ Other Business  
|  B. BRIEFLY DESCRIBE NATURE OF BUSINESS                    
|     Mining of gold in Alaska.                              
|  
| CHAPTER OR SECTION OF BANKRUPTCY CODE UNDER WHICH THE PETITION    
 | IS FILED (Check one box)    
|     Chapter 7    X Chapter 11   __ Chapter 13                     
 |  __ Chapter 9   __ Chapter 12   __ Sec. 304 - Case Ancillary to  

|                                               Foreign Processing  
| FILING FEE (Check one box)
|   X Filing fee attached 
|  __ Filing fee to be paid in installments. (Applic. to individuals |
|     only.) Must attach signed application for the court's consider-|
|     ation certifying that the debtor is unable to pay fee except   |
|     in installments.  Rule 1006(b). See Official Form No. 3.       |
|-----------------------------------------------------------------------------
| NAME AND ADDRESS OF LAW FIRM OR ATTORNEY                           |
| LeBOEUF, LAMB, GREENE & MacRAE, L.L.P., 633 17th St., #2000        |
| Telephone No. (303) 291-2600            Denver, CO  80202          |
                                                          
| ----------------------------------------------------------------------------
| | NAME(S) OF ATTORNEY(S) DESIGNATED TO REPRESENT DEBTOR |
| | (Print or Type Names) |
| | Carl A. Eklund |
| ----------------------------------------------------------------------------
| | __ Debtor is not represented by an attorney

==============================================================================
| STATISTICAL/ADMINISTRATIVE INFO. (USC ss.604) (Estimates only)
| (Check applicable boxes)|
- ------------------------------------------------------------------------------
| X Debtor estimates that funds will be available for distribution to unsecured
creditors|| Debtor estimates  that,  after any exempt property is excluded and
administrative | | expenses  paid,  there  will  be  no  funds  available  for
distribution to unsecured creditors |
- ------------------------------------------------------------------------------
| ESTIMATED NUMBER OF CREDITORS                                             
|     1-15        16-49         50-99        100-199    200-299    1000-over
                                                X
- ------------------------------------------------------------------------------
| ESTIMATED ASSETS (In thousands of dollars)                                  
| Under 50   50-99   100-499   500-999  1000-9999  10,000-99,000  100,000-over
|                                                         X                 
- -----------------------------------------------------------------------------
| ESTIMATED LIABILITIES (In thousands of dollars)                            
| Under 50   50-99   100-499   500-999  1000-9999  10,000-99,000  100,000-over
|                                                        X                  
- ------------------------------------------------------------------------------
| EST. NO. OF EMPLOYEES - CH 11 & 12 ONLY                                    
|     0       1-19      20-99       100-499       1000-over 
                          X
- ------------------------------------------------------------------------------
| EST. NO. OF EQUITY SECURITY HOLDERS - CH. 11 & 12 ONLY                     
|     0      1-19       20-99       100-499       1000-over                 
               X
==============================================================================


DN2 109434.1 89000 07174
5/21/98 11:23 am


|Name of Debtor USMX of Alaska, Inc.

Case No. __________________________________________

- ------------------------------------------------------------------------------
                                 FILING OF PLAN
For Chapter 9, 11, 12 and 13 cases only.  Check appropriate box.

___ A copy of debtors proposed plan dated X Debtor intends to file a plan 
within the time allowed by statute, is attached rule or order of the court
- ------------------------------------------------------------------------------
PRIOR  BANKRUPTCY  CASE FILED  WITHIN LAST 6 YEARS 
(If more than one, attach additional sheet)
Location Where Filed                      Case Number          Date Filed
- ------------------------------------------------------------------------------
PENDING BANKRUPTCY CASE FILED BY ANY SPOUSE, PARTNER, OR AFFILIATE OF THE 
DEBTOR (If more than one,  attach  additional  sheet) 
Name of Debtor                            Case Number          Date

Relationship                              District             Judge
- ------------------------------------------------------------------------------
REQUEST FOR RELIEF

Debtor requests relief in accordance with the chapter of title 11, United 
States Code specified in this petition
- ------------------------------------------------------------------------------
                                   SIGNATURES

ATTORNEY

X _______________________________________________  __________________________
  Signature                                                   Date
- ------------------------------------------------------------------------------
                           INDIVIDUAL JOINT DEBTOR(S)

  I declare  under  penalty  of perjury  that the information provided in this
petition is true and correct

X _______________________________________________ ____________________________
                                                                 Date       

X _______________________________________________ ____________________________
                                                                 Date       
- ------------------------------------------------------------------------------
                        CORPORATE OR PARTNERSHIP DEBTOR

   I declare  under penalty of perjury that the  information  provided in this
 petition is true and correct and that the filing of this petition on behalf of
 the debtor has been authorized

X ___________________________________________________
  Signature of Authorized Individual

X ___________________________________________________
  Print or Type Name of Authorized Individual

X ___________________________________________________
  Title of Individual Authorized by Debtor to File this Petition

  _______________________________________
  Date

- ------------------------------------------------------------------------------

EXHIBIT   "A"  (To  be   completed   if   debtor  is  a corporation, requesting
 relief under Chapter 11.)
______ Exhibit "A" is attached and made part of this petition
         
- ------------------------------------------------------------------------------
TO BE COMPLETED BY INDIVIDUAL CHAPTER 7 DEBTOR WITH PRIMARILY CONSUMER DEBTS 
(See P.L. 98-353 ss. 322)

  I am aware that I may proceed under chapter 7, 11, or 12, or 13 of title 11,
United States Code, understand the relief  available  under such chapter,  and
choose to proceed under chapter 7 of such title

  If I am represented by an attorney Exhibit B has been completed

X ________________________________________________   ________________________
  Signature of Debtor                                           Date

X ________________________________________________   ________________________
  Signature of Joint Debtor                                     Date
- ------------------------------------------------------------------------------
EXHIBIT  "B"  (To be  completed by attorney for individual chapter 7 debtor(s)
with primarily consumer debts.)

I, the attorney for the debtor(s)named in the foregoing petition, declare that
I have informed the debtor(s) that(he, she, or they) may proceed under chapter
7, 11, 12, or 13 of title 11, United States Code, and have explained the relief
available under such chapter

X __________________________________________________  ________________________
  Signature of Attorney                                          Date
- ------------------------------------------------------------------------------




                         UNITED STATES BANKRUPTCY COURT
                        V O L U N T A R Y P E T I T I O N

- ---------------------------------============================================
          
                For the           DISTRICT OF      COLORADO                  
- ---------------------------------============================================
| IN RE (Name of debtor, if individual, Last, First, Middle) 
| USMX, INC.                                               

| NAME OF JOINT DEBTOR (Spouse)(Last, First, Middle)                        

- ----------------------------------------------------------------------------
| ALL OTHER NAMES used by the debtor in the last 6 years    
| (Include married, maiden, and trade names)                
|                                                         
| ALL OTHER NAMES used by the debtor in the last 6 years         
| (Include married, maiden, and trade names)                               
- -----------------------------------------------------------------------------
| SOC.SEC./TAX I.D. NO. (If more than one, state all)        
   84-1076625                                           

| SOC.SEC./TAX I.D. NO. (If more than one, state all)           

- ----------------------------------------------------------------------------
| STREET ADDRESS OF DEBTOR (No & street, city, st. & zip code
| 1560 Broadway, Suite 880                                             
| Denver, CO  80202                                          
                                                       
| STREET ADDRESS OF JOINT DEBTOR (No. & street, city, st. & zip code)|
                                                          
| COUNTY OF RESIDENCE OR PRINCIPAL PLACE OF BUSINESS  Denver  

| COUNTY OF RESIDENCE OR PRINCIPAL PLACE OF BUSINESS                 
- -----------------------------------------------------------------------------
| MAILING ADDRESS OF DEBTOR (If different from street  address|  

 MAILING ADDRESS OF JOINT DEBTOR (If different from street address) 
  Same as Above 
- -----------------------------------------------------------------------------
| LOCATION OF  PRINCIPAL  ASSETS OF BUSINESS  DEBTOR 
(If different from address listed above)
- -----------------------------------------------------------------------------
                             VENUE (Check one box)

|  X  Debtor has been domiciled or has had a residence principal place
|     of business, or principal assets in this District for 180 days 
|     immediately preceding the date of this petition or for a longer
|     part of such 180 days than in any other District. 
| 
|  __ There is a bankruptcy case concerning debtor's affiliate, 
|     general partner, or partnership pending in this District. 
- -----------------------------------------------------------------------------
           | INFORMATION REGARDING DEBTOR (Check applicable boxes) |
- -----------------------------------------------------------------------------
| TYPE OF DEBTOR                                             
|     Individual                Corporation Publicly Held    
|  __ Joint (Husband & Wife)  X Corporation Not Publicly Held
|  __ Partnership            __ Municipality                 
|  __ Other                                                  
| NATURE OF DEBT                                            
|     Non-Business/Consumer   X Business - Complete A&B Below
|  A. TYPE OF BUSINESS (Check one)                           
|  __ Farming          __ Transportation  __ Commodity Broker
|  __ Professional      X Manufacturing/  __ Construction    
|  __ Retail/Wholesale    Mining          __ Real Estate     
|  __ Railroad         __ Stockbroker     __ Other Business  
|  B. BRIEFLY DESCRIBE NATURE OF BUSINESS                    
|     Parent corporation of various mining entities          
|                                                          
| CHAPTER OR SECTION OF BANKRUPTCY CODE UNDER WHICH THE PETITION     
| IS FILED (Check one box)                                           
|     Chapter 7    X Chapter 11   __ Chapter 13                      
|  __ Chapter 9   __ Chapter 12   __ Sec. 304 - Case Ancillary to    
|                                               Foreign Processing   
 | FILING FEE (Check one box)                                        
|   X Filing fee attached                                            
|  __ Filing fee to be paid in installments. (Applic. to individuals 
|     only.) Must attach signed application for the court's consider-
|     ation certifying that the debtor is unable to pay fee except   
|     in installments.  Rule 1006(b). See Official Form No. 3.       
- ------------------------------------------------------------------------------
| NAME AND ADDRESS OF LAW FIRM OR ATTORNEY                           
| LeBOEUF, LAMB, GREENE & MacRAE, L.L.P., 633 17th St., #2000        
| Telephone No. (303) 291-2600            Denver, CO  80202          
| ----------------------------------------------------------------------------
| | NAME(S) OF ATTORNEY(S) DESIGNATED TO REPRESENT DEBTOR |
| | (Print or Type Names) |
| | Carl A. Eklund |
| ---------------------------------------------------------------------------
| | __ Debtor is not represented by an attorney |
=================================================----------------------------
|  STATISTICAL/ADMINISTRATIVE INFO. (USC ss.604)  (Estimates only)
   (Check applicable boxes)|
- -----------------------------------------------------------------------------
|__ Debtor  estimates that funds will be available for  distribution  to 
    unsecured creditors|
| X Debtor  estimates that, after any exempt property is excluded and
    administrative expenses  paid,  there  will  be  no  funds  available for
    distribution to unsecured creditors |
- -----------------------------------------------------------------------------
| ESTIMATED NUMBER OF CREDITORS                                            
|   1-15      16-49      X  50-99      100-199      200-299      1000-over 
- -----------------------------------------------------------------------------
| ESTIMATED ASSETS (In thousands of dollars)                               
| Under 50   50-99  100-499   500-999  1000-9999  X 10,000-99,000  100,000-over
|                                                                        
- -----------------------------------------------------------------------------
| ESTIMATED LIABILITIES (In thousands of dollars)             
| Under 50  50-99  100-499  500-999  1000-9999   X 10,000-99,000   100,000-over
|                                                        
- -----------------------------------------------------------------------------
| EST. NO. OF EMPLOYEES - CH 11 & 12 ONLY                                    
|     0    X  1-19       20-99       100-499       1000-over                 
  ---     ---        ---         ---           ---
- -----------------------------------------------------------------------------
| EST. NO. OF EQUITY SECURITY HOLDERS - CH. 11 & 12 ONLY                    
|     0    X  1-19       20-99       100-499       1000-over                
============================================================================


DN2 109457.1 89000 07174
1/22/98 12:10 pm


Name of Debtor USMX, Inc.

Case No. __________________________________________

- -----------------------------------------------------------------------------
                                 FILING OF PLAN
For Chapter 9, 11, 12 and 13 cases only.  Check appropriate box.

___ A copy of debtors proposed plan dated X Debtor intends to file a plan 
within the time allowed by statute, is attached rule or order of the court
- -----------------------------------------------------------------------------
PRIOR BANKRUPTCY CASE FILED WITHIN LAST 6 YEARS (If more than one, attach
additional sheet)
- -----------------------------------------------------------------------------
Location Where Filed                 Case Number         Date Filed

- -----------------------------------------------------------------------------
PENDING BANKRUPTCY CASE FILED BY ANY SPOUSE,  PARTNER,  OR AFFILIATE OF
THE DEBTOR  (If more than one,  attach  additional  sheet) 
Name of Debtor                       Case Number         Date

Relationship                         District            Judge

- -----------------------------------------------------------------------------

                               REQUEST FOR RELIEF

Debtor requests relief in accordance with the chapter of title 11, United 
States Code specified in this petition
- -----------------------------------------------------------------------------
                                   SIGNATURES
- -----------------------------------------------------------------------------
ATTORNEY

X _________________________________________   _______________________________
  Signature                                                Date

- -----------------------------------------------------------------------------
                           INDIVIDUAL JOINT DEBTOR(S)

  I declare  under  penalty  of perjury  that the  information provided in 
this petition is true and correct
 
X _____________________________________________________________

  _________________________________                                      
  Date                                                                      

X _____________________________________________________________

  _________________________________                                      
  Date           
- -----------------------------------------------------------------------------
                        CORPORATE OR PARTNERSHIP DEBTOR

I declare  under penalty of perjury that the  information  provided in this  
petition is true and correctand that the filing of this petition on behalf of
the debtor has been authorized

 X ____________________________________________________________
   Signature of Authorized Individual

  _____________________________________________________________         
  Print or Type Name of Authorized Individual

  ______________________________________________________________
  Title of Individual Authorized by Debtor to File this Petition

  _________________________________
  Date
- -----------------------------------------------------------------------------
EXHIBIT "A" (To be completed if debtor is a corporation, requesting relief 
under Chapter 11.)

______ Exhibit "A" is attached and made part of this petition
- -----------------------------------------------------------------------------
TO BE COMPLETED BY INDIVIDUAL CHAPTER 7 DEBTOR WITH PRIMARILY CONSUMER DEBTS 
(See P.L. 98-353 ss. 322)

  I am aware that I may proceed  under  chapter 7, 11, or 12, or 13 of title 
11, United States Code, understand the relief available under such chapter,
and choose to proceed under chapter 7 of such title

  If I am represented by an attorney Exhibit B has been completed

X ________________________________________    _______________________________
  Signature of Debtor                                     Date


X ________________________________________    _______________________________
 Signature of Joint Debtor                                 Date
- -----------------------------------------------------------------------------
EXHIBIT "B" (To be completed by attorney for individual chapter 7 debtor(s) 
with primarily consumer debts.)

I, the attorney for the debtor(s) named in the foregoing petition, declare 
that I have informed the debtor(s)  that (he, she, or they) may proceed under
chapter 7, 11, 12, or 13 of title 11, United States Code,  and have explained
the relief available under such chapter


X _______________________________________________   _________________________
  Signature of Attorney                                        Date
- -----------------------------------------------------------------------------




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