Elkins Energy Corp. v. Central Supply Co. of Virginia (In re Elkins Energy Corp.)

OPINION AND ORDER

H. CLYDE PEARSON, Bankruptcy Judge.

The issue before the Court is whether to allow a creditor’s claim based on an unsecured promissory note.

The debtor, Elkins Energy Corporation (Elkins), is engaged in coal mining and related operations. For a number of years, Elkins purchased mining supplies from the creditor in this proceeding, Central Supply Company of Virginia, Inc. (Central Supply), on open account. In September, 1978, El-kins executed a promissory note (the September note) payable to Central Supply in the amount of $545,000.00, the balance due on open account. The…