Trainor Glass Creditor Committee Seeks to Recover pre-Chapter 11 Payments

Glass Magazine
April 16, 2013
COMMERCIAL, FABRICATION

The Official Committee of Unsecured Creditors of Trainor Glass Co. has filed more than 140 "Complaints" against companies Trainor Glass paid during the 90 days prior to filing for bankruptcy in March 2012. The committee is looking to avoid and recover payments made during the pre-filing period. The payments include transfers of "property, either by checks, cashier checks, wire transfers, direct deposit, or otherwise to certain entities," according to court documents.

The Official Committee of Unsecured Creditors consists of three unsecured creditors that were selected in late March 2012 to represent the group of creditors in the bankruptcy proceedings. The committee includes representatives for the International Painters and Allied Trade Industry Pension Fund, Knowles Door Check Co., and Oldcastle BuildingEnvelope.

In the complaints, the committee makes several claims, including that, "on the date each transfer was made, [Trainor Glass]: was insolvent or became insolvent as a result of such Transfer; was engaged in business or a transaction, or was about to engage in business or a transaction, for which any property remaining with [Trainor Glass] was an unreasonably small capital; or intended to incur, or believed it would incur, debts that would be beyond [its] ability to pay as such debts matured," according to the documents.

Additionally, the committee claims that each payment, cited as a "preferential transfer," enabled the company that received the payment—the Defendant—to receive more than the it would have if: "[Trainor Glass'] case was brought under chapter 7 of the Bankruptcy Code; the Preferential Transfers had not been made; and the Defendant had received payment of such debt to the extent provided by the Bankruptcy Code."

Numerous glass and glazing companies are among those listed in the complaints, with payment amounts ranging from less than $10,000 to more than $1 million. They include:

  • 3Form Inc., $133,397
  • All Metals Fabrication, $20,524
  • Applied Research Associates, $32,647
  • Architectural Metal Fabricator, $20,000
  • Architectural Systems Inc., $813,835
  • Architectural Testing, $15,500
  • Armortex, $15,619
  • Assa Abloy, Besam Entrance Solutions, $207,879
  • Brothers Glass & Glazing, $23,792
  • Building Envelope Solutions, $477,151
  • C.R. Laurence Co., $171,170
  • Coyote Glass, $66,977
  • Curtain Wall Erectors Inc., $619,695
  • Custom Window Company, $16,245
  • Dorma Glas Inc., $18,705
  • EFCO Corp., $718,583
  • Façade Concepts, $76,097
  • Firestone Building Products, Una-Clad, $114,012
  • Hafele America Co., $8,062
  • J.E. Berkowitz, $303, 151
  • Kawneer Co., $147,448
  • Klein USA, $63,886
  • Mammen Glass & Mirror Inc., $67,469
  • Mapes Industries Inc., $16,736
  • McGrory Glass, $75,740
  • Mestek, Linel Signature, $18,533
  • Midwest Wholesale Hardware, $51,795
  • Northwestern Industries Inc., $15,309
  • Nupress Facades, $52,960
  • Pittco Architectural Metals, $24, 723
  • Safti First, $53,906
  • Security Lock Distributors, $35,069
  • Skyline Design, $105,039
  • Skyline Sky-Lites, $158,197
  • Supersky Products, $27,112
  • Tremco, $69,250
  • Trulite Glass & Aluminum Solutions, $503,266
  • Unicel Architectural Inc., $84,400
  • Viracon, $1,155,077
  • W&W Glass, $481,924
  • YKK AP, $152,571