Committee Files Complaints against Affiliated Entities; Amended Disclosure Statement Approved and Plan Confirmation Hearing Scheduled

On or about April 14, 2014, the Committee filed a Complaint against Dlubak Glass and Frank C. Dlubak for fraudulent transfers related to the sale of the Debtor’s scrap glass in the amount of approximately $83,000.  Additionally, on or about April 29, 2014, the Committee filed Complaints against GreenHeat, LP and GreenHeat Management, Inc. (“GreenHeat”), as well as Global Ceramic Services, Inc., a/d/b/a Dlubak Powder Coating, a/k/a Dlubak PC Designs (“GCS”).  Each of the Complaints relates to fraudulent transfers made from the Debtor to pay the expenses/purchases of each affiliated entity.  The Complaint against GreenHeat is for approximately $582,000, and the Complaint against GCS is for approximately $590,000.  Answers to the Complaints are due in May 2014.  

In addition, on or about May 1, 2014, the Committee filed its First Amended Plan ( “Plan”) and Disclosure Statement regarding the liquidation of the Debtor’s remaining assets.  With substantially all of the Debtor’s operating and real estate assets having been sold, the primary remaining assets consist of the Bankruptcy Estate’s claims against Dlubak Glass, Frank Dlubak, GreenHeat, GCS, and any other parties currently under investigation by the Committee.  The Committee proposes to make distributions to unsecured creditors from any recovery on those claims.

Subsequently the Court entered an Order on May 6, 2014, approving the Amended Disclosure Statement as containing adequate information, and a Plan Confirmation Hearing has been scheduled for Wednesday, July 2, 2014, in the Johnstown Bankruptcy Courtroom, or via video conference from Pittsburgh, with objections due by June 25, 2014.  All creditors will soon be receiving a ballot for the purposes of accepting or rejecting the Plan.