Chapter 7 Bankruptcy Staunton River Manufacturing Old Wagon Wheel Factory August 14, 2000 An Open Letter to "PREPAID ORDER CUSTOMERS" Creditors who made deposits on unfulfilled Orders Re: Staunton River Manufacturing Corporation Old Wagon Wheel Factory BK 00-60750-DOT Chapter 7 Bankruptcy United States Bankruptcy Court Eastern District of Virginia, Richmond Division Gentlemen and Ladies:      Please, take Notice.      (1) We represent the debtor bankrupt corporation. We do not represent you. If you need legal help you should contact an attorney.      (2) While we do not represent you, and while we will not give you legal advice, we do want to be helpful in providing information to you and/or your attorney. We do not warrant or guarantee information we give you, but what we tell you will be to best of our actual information, knowledge and belief.      (3) Some creditors have made deposits on merchandise that they did not receive and which they will not receive.      (4) The Bankruptcy Court Clerk on August 12, 2000, sent to all creditors and parties in interest in the case a "Notice of Need To File Proof of Claim". You should have received that notice which included a blank proof of claim form for creditors to fill out and send back. This bankruptcy case is "an asset case" and there will likely be a distribution of funds ultimately to certain creditors according to a scheme laid out by the Bankruptcy Code. BUT ONLY CREDITORS WHO FILE PROOF OF CLAIMS WILL RECEIVE A DISTRIBUTION!!! Even if you file a claim, you may not ultimately receive all of your claim. We would encourage you to immediately file your claim.      (5) We believe that those creditors who made deposits up to $1,950.00 for orders for merchandise they did not receive should by law be given priority over certain other creditors in any distribution from the bankruptcy estate. To claim that priority pursuant to 11 U.S.C. §507(a)(6) of the Federal Bankruptcy Code you should check the appropriate block on your proof of claim form. One of the portions of the claim form is entitled "6. Unsecured Priority Claim." The fourth block down in that section is where you mark the block to claim "Up to $1,950 of deposits toward purchase, lease, or rental of property or services for personal, family, or household use - 11 U.S.C. §507(a)(6)." This may be very important in determining how much of your claim may ultimately be paid.      (6) You should know that any potential distribution from the Bankruptcy Court Trustee will likely be many months away. The Bankruptcy Trustee has many things to do, including, but not limited to meeting with the debtor's representatives, reviewing legal documents and accounting records, collecting and liquidating the assets, filing tax returns, filing reports, pursuing legal claims of the debtor, and obtaining various orders from the Bankruptcy Court Judge. Thank you for your help and cooperation   Sincerely Yours,   Leonard E. Starr, III