In Re Banner Iron Works

MEMORANDUM OPINION

DAVID P. McDONALD, Bankruptcy Judge.

FINDINGS OF FACT(1) At some point prior to the commencement of the instant bankruptcy case, Banner Iron Works (“Banner”) and the Gilbane Building Company (“Gilbane”) entered into a construction contract, known as the Ball-ston Common Mall Construction Contract.(2) In connection with this contract, the American Insurance Company (“American”) issued payment and performance bonds naming itself as surety and Banner as principal thereon.(3) On November 7, 1984, an order for relief under Chapter 11 of the Bankruptcy Code was entered on Banner’s…