The representation of unsecured creditors of Dlubak Corporation, which filed for bankruptcy last August, has put forth a plan of orderly liquidation.
The Plan was dated May 1, approved by the United States Bankruptcy Court for the Western District of Pennsylvania May 6 and is scheduled for a confirmation hearing July 2.
According to court documents, “This is a liquidating Chapter 11 Plan, with substantially all of the Debtor’s assets having been sold. The remaining asset of the Debtor’s Estate include claims for fraudulent transfers, unauthorized post-petition transfers, and related state law claims.”
The order of priority for claim recovery is as follows: Class 1, all priority claims; Class 2, all secured claims; Class 3, all allowed general unsecured claims against the debtor; and Class 4, all equity interests in the debtor. Frank C. Dlubak is the holder of the equity interest and owns 100 percent of the stock of the debtor, according to the court.
The priority claims in the plan total $328,516.40, with $224,321 going to United Steelworkers and $104,195.40 to various former wage employees. The Class 3 general unsecured claims “have been estimated in the approximate amount of $4,923,325.23.”
The Official Committee of Unsecured Creditors of Dlubak Corporation wrote a letter dated May 12 to all creditors of Dlubak, recommending each unsecured creditor vote in favor of the plan and setting a vote deadline of June 25.
“. . . The committee believes that the Plan is fair and provides unsecured creditors with the best possible recovery under the circumstances of this Case,” reads the letter.
Dlubak Specialty Glass, owned by Consolidated Glass Holdings, is not a part of the bankruptcy proceedings.