In the Matter of Diversified Mountaineer Corporation, Debtor v. Carl M. Duttine, Trustee of Diversified Mountaineer Corporation v. Nick Savas

Here we review the decision of the United States Court for the Southern District of West Virginia holding each of the five appellants 1 indebted to the bankrupt Diversified Mountaineer Corporation (DMC), a West Virginia industrial loan company, in accordance with the terms of certain individual promissory notes signed by each of them. The notes were given by appellants to DMC, in exchange for shares in DMC’s Virginia and West Virginia subsidiaries, with the understanding that they would never have to be paid. Appellants needed these shares to satisfy the statutory qualifications for becoming…