In re Hollow Mountain Res., Inc. & Steven R. Mullins Excavating, Inc. (Case No. 04-00988) 12/13/2004
Four debtors filed voluntary bankruptcies under Chapter 11, and the cases are being jointly administered by the Court. The matter before the Court is the Joint Motion of two of the debtors to approve a subcontract agreement between such corporations. Each debtor was represented by separate counsel in the negotiation of such proposed subcontract. A creditor objected to the Motion. The Court found that the creditor's only real objection is that the subcontract should provide a higher royalty payment to one of the debtors. The Court held that the creditor's objection is merely a collateral attack on the Court's order approving such royalty arrangement. All other parties in interest vigorously support the approval of the subcontract and evidence discloses that such a subcontract is an appropriate exercise of the business judgment and management of both companies. Accordingly, the Court approved the subcontract agreement.