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IN RE HILYARD DRILLING CO., INC.

Bankruptcy No. ED 85-10M. CMS Nos. 85-120M, 85-176M.

58 B.R. 616 (1985)

In re HILYARD DRILLING COMPANY, INC., Debtor-in-Possession. UNITED STATES FIDELITY AND GUARANTY CO., Plaintiff, v. HILYARD DRILLING COMPANY, INC., Defendant. UNITED INSURANCE AGENCY, INC., Plaintiff, v. HILYARD DRILLING COMPANY, INC., Defendant.

United States Bankruptcy Court, W.D. Arkansas, El Dorado Division.

June 7, 1985.

Attorney(s) appearing for the Case

Susan Gunter, Little Rock, Ark., for debtor.

Isaac A. Scott, Little Rock, Ark., trustee.

Ian W. Vickery, El Dorado, Ark., Gregory M. Hopkins, Little Rock, Ark., for United Insurance Agency, Inc.

MEMORANDUM OPINION

JAMES G. MIXON, Bankruptcy Judge.

On January 25, 1985, Hilyard Drilling Company, Inc., (Hilyard), filed a voluntary petition in bankruptcy under the provisions of Chapter 11 of the Bankruptcy Code. For several years prior to the filing of the petition, United Insurance Agency, Inc., a general agent for United States Fidelity Guaranty Company, (USF & G), had arranged Hilyard's insurance needs. These coverages included general liability...

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