In Re Xenerga, Inc.

MEMORANDUM OPINION DENYING APPROVAL OF COMPROMISE OF CONTROVERSY

KAREN S. JENNEMANN, Bankruptcy Judge.

Before this bankruptcy case was filed, two of the debtor’s unsatisfied customers, North Texas Alternative Energy, LLC, and NTAE Biofuel Mfg., LLC (together, “NTAE”), sued the debtor and three insiders in state court alleging numerous causes of action arising from a breach of contract between the parties. The Chapter 7 trustee, Marie Henkel, now seeks approval to settle NTAE’s claims against the debtor’s insiders for $80,000, arguing that the claims actually are “alter ego” claims which are…