Continental Illinois National Bank & Trust Co. v. Federal Deposit Insurance

BALDOCK, Circuit Judge.

This is an appeal from the district court’s order affirming an order by the bankruptcy court in the bankruptcy proceedings of Continental Resources Corporation (Continental Resources). For the reasons set forth below, we affirm.

I

Continental Resources was an oil and gas exploration and development company. It entered into an agreement with Penn Square Bank (Penn Square) in June 1981, to establish a $20 million revolving loan (June loan). Continental Resources executed a promissory note payable to Penn Square for $20 million and granted mortgages on certain oil and gas…