Volume 50, Issue 6 - June 2015

Legislation&Legal

Dlubaks Deny Improper Transfer
Allegations in Amended Complaint

The back-and-forth allegations continue regarding alleged fraudulent and unauthorized transfers prior to Dlubak Corp.’s bankruptcy proceedings—transfers that the defendants deny were improper.

On March 30, the Official Committee of Unsecured Creditors of Dlubak Corp. filed an amended complaint to avoid fraudulent and unauthorized transfers against Dlubak Glass Co. and Frank C. and Ave Maria Dlubak. This stems from an ongoing bankruptcy case being handled in the United States Bankruptcy Court Western District of Pennsylvania.
In separate answers and affirmative defenses to the complaint—dated April 30—both Dlubak Glass Co. and the Dlubaks deny allegations of four counts of fraudulent transfer. They also deny a count of avoidance of post-petition transfer, a count of recovery of avoided transfers and a count of unjust enrichment.

The committee alleges that the debtor was unable to satisfy a secured claim of $3.1 million to First Commonwealth Bank, though Dlubak Corp. insists in its answer that “First Commonwealth Bank has been paid in full; also, the plan filed by the Committee does, in fact, acknowledge that all secured creditors were paid in full from the sale of Dlubak Corporation’s assets.”

The Dlubaks further deny receiving any improper payments despite the Committee’s allegations that a total of “$83,731.50 in payments from Dlubak Glass were made solely for the benefit of the scrap glass owned by the debtor during the relevant Period,” according to court documents.

Dlubak Specialty Glass, which is owned by Consolidated Glass Holdings, is a separate company and not a part of the bankruptcy proceedings or litigation.


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