In re Westec Corp. v. Carpenter

WISDOM, Circuit Judge.

This case tangentially relates to the collapse of Westec Corporation, a Texas corporation now in proceedings for reorganization under Chapter X of the Bankruptcy Act. The facts out of which it arises constitute a prescription for corporate collapse: loose stock transactions, a corporate acquisition made to placate and benefit a subsidiary’s principal officer and, allegedly, double payment for an officer’s activities.

Garland Walker asserts a claim of $383,000 against the Trustee in Bankruptcy based on an alleged contract with Westec. The district court disallowed the…