On or about January 9, 2014, the Debtor filed a Motion to
Sell Real Estate Free & Clear of Liens & Encumbrances (the “Motion”)
with respect to the sale of its former operating facility located at 520 Chestnut Street, Blairsville, PA 15717. The
Debtor previously sold substantially all of its non-real estate assets to
Dlubak Specialty Glass Corporation, an affiliate of Grey Mountain Partners (the
“Buyer”). As a result, the Debtor has
essentially ceased doing business, while its former operating facility is being
leased by the Buyer. The Debtor now proposes to sell substantially all of
its real estate assets to KMS Property Acquisition Co. (“KMS”) for the sum of
$800,000. With approximately $660,000 still reportedly owed to First
Commonwealth Bank, and additional costs expected to total in excess of $75,000,
including real estate taxes and a broker’s fee, there presently appears to be
limited funds available from the sale for the benefit of the Bankruptcy
Estate.
The proposed sale to KMS is subject to higher bidding by qualified third-party buyers. A Sale Hearing has been scheduled for Thursday, February 13, 2014, at 10am in the Johnstown Courtroom, or via video conference from Pittsburgh. Responses to the Motion are due by February 6, 2014. For additional information regarding the terms of the proposed sale or third-party buyer qualifications, please do not hesitate to contact us at dlubakcommittee@quinnfirm.com.
