Efforts by Gene Miller Co. Inc. to reorganize its finances ended today when a federal judge dismissed the Pleasant Hill drilling contractor’s bankruptcy case.

U.S. Bankruptcy Judge Lee Jackwig dismissed the Chapter 11 filing after an attorney for the company, known as Miller the Driller, withdrew objections to efforts by Valley Bank and the U.S. trustee overseeing the case to have it dropped. Both argued that the family enterprise had little chance of successfully reorganizing its finances and paying creditors.

“The debtor continues to churn through cash collateral, but possesses no reasonable likelihood of rehabilitation,” attorneys for Valley Bank said in a court document. The lender claimed it was owed more than $2.8 million on notes issued in 2006 and 2008.

The company’s schedules stated that it owed $347,528 to a variety of union funds and $768,686 in taxes.

Brandon Young, vice president of operations, declined comment.

In a May 20 Business Record article, Kris Young, president of the 63-year-old company, said financial woes were triggered by collapse of the economy and development markets in 2008. She said the company went into the recession early and came out of it early.

Miller the Driller reported gross income of about $3.6 million in 2009 and $6.2 million in 2010.

However, Valley Bank said in a court document that the company’s audited financial report for 2009 and 2010 noted negative net income and remarked that Miller the Driller “may be unable to continue as a going concern.”

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