The federal government has approved the formation of a committee of unsecured creditors who will review recent financial transactions made by Blairsville, Pa.-based Dlubak Corp. before it recently filed for Chapter 11 bankruptcy.
Representatives from Curbell Plastics, JPS Elastomerics Corp., Laird Plastics, SABIC Polymershapes and Dominion Resources Services Inc. plan to scour the company books in an effort to recover as much money as possible that is owed to them.
“We have a fiduciary duty to all unsecured creditors to review the receipts,” says Lawrence Bolla, the Pennsylvania-based attorney now serving as the committee’s legal counsel.
Owed nearly a million dollars, Curbell Plastics is easily the largest of the more than 200 creditors listed in papers filed by Dlubak Corp. with the U.S. Bankruptcy Court of the Western District of Pennsylvania on August 7.
JPS Elastomerics Corp. is the second-biggest creditor and owed nearly $470,000, according to court documents. Overall, Dlubak Corp., a supplier of security glass and architectural flat and bent glass laminates, owes three different creditors more than $400,000 and at least $75,000 to 11 creditors, according to court records. U.S. trustee Roberta A. DeAngelis approved the formation of the creditors committee in the hopes of recovering as much of the money as possible.
By law, the committee has the right to demand that Dlubak Corp. consult with it before making any major changes. Attorney fees and other expenses incurred by the committee may be paid from any available Dlubak Corp. assets, pending court approval.
Dlubak Corp.’s estimated assets and estimated debts are both listed between $1 million and $10 million, according to court documents.
Bolla says “everything” will be up for review.
Some relief could be on the way as General Glass International (GGI), of Secaucus, N.J., reached a “stalking horse” agreement of $2.2 million with Dlubak Corp. last week. Judge Jeffrey A. Deller has set a September 23 auction date for all of Dlubak Corp.’s non-real estate assets. That sale will include equipment and inventory, books and records, all intellectual property rights, all products in development and all cash, cash equivalents and accounts receivable.
Other bidders could also enter the mix, such as Oran Safety Glass (OSG) or Grey Mountain Partners, whose initial “stalking horse” agreement of $2 million stood before being eclipsed by GGI’s offer.
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