Thomas Companies v. United Fire & Casualty Co. (In Re Thomas Companies)

OPINION

WILLIAM V. ALTENBERGER, Chief Judge.

The Debtor entered into a construction contract with the State of Illinois Capitol Development Board for heating and air conditioning and ventilating work for the Health Sciences Building at Sangamon State University (PROJECT). The Defendant issued a performance, labor and materialmen’s bond, as surety for the Debtor, on the PROJECT. Prior to the PROJECT being completed, the Debtor filed a Chapter 11 proceeding in bankruptcy. The Debtor continued to work on the PROJECT while it negotiated with the Defendant concerning the terms of its continuing to…