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Another page has turned in ongoing litigation related to the Dlubak Corp. bankruptcy case.
Dlubak Corp. filed for bankruptcy in August of 2013, and the committee of unsecured creditors in the case subsequently filed various complaints again multiple parties—including Frank C. and Ave Maria Dlubak, GreenHeat, GreenHeat Management, Global Ceramic Services, Dlubak Powder Coating and Dlubak Glass Co.—alleging fraudulent and unauthorized transfers and attempting to recover funding from such.
The sides met in mediation at the end of the June, and the committee’s plan administrator Lawrence C. Bolla reached a settlement with Dlubak Glass Co. before the remaining defendants came to a global settlement earlier this month. According to court documents, the latter settlement totals $100,000, which “one or more of the Defendants shall pay … no later than October 30, 2015.”
If the settlement is received on or prior to that date, the defendants may pay $95,000 and be considered paid in full, but a 6-percent interest rate will be tacked on to the sum on October 31 and will accrue until paid in full.
The request to approve the settlement also asserts that “[n]othing herein shall be deemed or construed as an admission of wrongdoing or liability by the Plan Administrator, the Debtor, its Estate, or the Defendants.”
In the motion, Bolla asserts that the approval of the settlement is in the best interest of the parties based on valuation of the cost and benefit of ongoing litigation, and that “the risk outweighs the potential reward.”
The committee, last year, filed a complaint “to avoid and recover fraudulent and unauthorized payments made to Dlubak Glass Co. for the benefit of Frank C. and Ave Maria Dlubak (the Dlubaks),” according to court documents. Bolla also named the Dlubaks as a defendant in a related complaint and had been in litigation with the parties since. Both defendants denied improper transfer allegations in separate answers.
The parties participated in mediation with Bolla on June 30, where Bolla and Dlubak Corp. agreed to a separate settlement of the adversary proceeding from the Dlubaks’ settlement of all other pending adversary proceedings in the case. According to the terms of the agreement, Dlubak Glass Co. agreed to pay $12,000 to the committee.
Dlubak Specialty Glass, which is owned by Consolidated Glass Holdings, is a separate company and not a part of the bankruptcy proceedings or litigation.
