purchase orders placed by Ernst for materials were rejected by the material suppliers to which said purchase orders were issued (the extent of which is unknown to Ernst) and all materials and working capital used by the joint venture subsequent to December 1, 1978 were acquired or furnished by Alrich. Alrich performed all work required by the Subcontract and provided all labor used in the performance of the Subcontract. The project was completed in August 1980.
It was an initial requirement that the electrical subcontractor furnish bonds to Bay-Con General, Inc., as obligee, which guaranteed the performance of the work by the electrical contractor and payment of all labor and materialmen of the electrical subcontractor. Subsequent to estimating the Project, Alrich discovered it could not furnish the aforementioned bonds.under the agreement. Service of the summons and complaint was perfected on May 6, 1980 by serving Ernst at its job site office in Richmond County, Georgia.
Pursuant to a letter, dated May 20, 1980, from Philip R. Mann, a member of Shea & Gould, to Wilson & Trotter, Alrich's counsel, and filed with the clerk of the Georgia Court and previous telephone conversations between Wilson & Trotter and Ernst's General Counsel, Dean Haskell, Ernst confirmed the fact it had previously filed a petition instituting a Chapter XI case in the Southern District of New York and that commencement of the aforesaid action was in violation of the stay imposed by Chapter XI Rule 11-44 and any continuation thereof would result in a request being made to this court