Last month, the plan administrator for Dlubak Corp.’s ongoing bankruptcy case filed a complaint in the United States Bankruptcy Court of the Western District of Pennsylvania against Frank and Ave Maria Dlubak “to avoid and recover fraudulent transfers.” The Dlubaks, the defendants in the case, have filed an answer and affirmative defenses, denying allegations of fraudulent transfers.

The complaint, filed by Lawrence C. Bolla on February 12, alleges four counts of fraudulent transfers, a count of Recovery of Avoided Transfers, a count of Breach of Fiduciary Duty to Debtor, and a count of Breach of Fiduciary Duty to Creditors—all of which the Dlubaks deny and request that the court judge in their favor.

The complaint claims “The Debtor made transfers during the Relevant Period in the amount of approximately $1,185,254.59 to or for the benefit of the Dlubaks.” It alleges that those transfers were deposited into one of their joint bank accounts “of which they enjoyed unfettered use and access.” The Dlubaks deny “that any purported transfer is improper, and strict proof is thereof demanded.”

In the recent defense filing, the Dlubaks affirm that “the Plan filed by Committee in the Dlubak Bankruptcy Case acknowledges that all secured creditors were paid in full out of the sale of the assets of Dlubak Corp.” The Dlubaks deny that any transfers were “made to the detriment of the creditors,” as alleged in the complaint, and that all “transfers to defendants were made in good faith, without any intent to hinder, delay or defraud any creditors of Debtor.”

On March 18, in the wake of the filings, the court ordered the parties to meet and confer within 14 days “to discuss the terms and conditions of a Joint Discover Plan and a Statement of Estimated Time of Trial.”

Dlubak Specialty Glass, which is owned by Consolidated Glass Holdings, is not a part of the bankruptcy proceedings.