Truckers owed Hundreds of Thousands of Dollars After Glass Manufacturer and Its Affiliates Bankrupt
Several trucking and logistics companies collectively owe hundreds of thousands of dollars after a 101-year-old specialty glass maker and its subsidiaries went out of business and filed for Chapter 7 bankruptcy in mid-July.
The management entity, Consolidated Glass Holdings Inc., lists the assets of all companies between $ 100,000 and $ 500,000 and its liabilities between $ 50 million and $ 100 million. Once the administrative fee is paid, no funds will be available to unsecured creditors of CGH and its subsidiaries, Neil Minihane, CGH’s director of restructuring, said to file for bankruptcy online.
CGH and its affiliates were acquired by CGH CAM Holdings, which included members of CGH’s management team, and investment firm Czech Asset Management LP and its affiliates, in June 2020.
According to the bankruptcy filing of CGH and its subsidiaries, SJC Onshore Direct Lending Fund III-4, managed by Czech asset management, is listed as the only secured creditor and claims he owes him over $ 85 million.
In his petition, based in Pennsylvania JE Berkowitz (JEB) has up to 999 creditors. The former family-owned company, founded in 1920, sold its shares to CGH, the investment arm of private equity firm Gray Mountain Partners, in 2016, before the acquisition in 2020 by the management of CGH and Czech Asset Management.
Among the glassmaker’s top 20 unsecured creditors are several trucking and logistics companies, including Cleveland’s R&R Express Inc., which owed more than $ 62,000; Epes Logistics Services of Greensboro, NC, owed nearly $ 25,000; and Xpedite Services of Sapulpa, Ohio, owed nearly $ 11,000.
Other unsecured creditors include three leasing companies: Miller Truck Leasing of Lumberton, New Jersey, owed nearly $ 750,200; Penske Truck Leasing of Philadelphia owed nearly $ 23,000; and Nets Trailer Leasing of NJ, headquartered in Burlington, New Jersey, owed approximately $ 9,500.
Eight months after CGH’s change of ownership, the company announced it was laying off approximately 200 employees at JEB, headquartered in Pedricktown, New Jersey, in February.
In a statement, CGH officials said delays and disruption to its workforce due to the global COVID-19 pandemic had taken its toll, forcing the company “to suspend manufacturing operations at JEB “.
Columbia Commercial Construction Products
Also in February, CGH announced it was winding down operations at its subsidiary, Columbia Commercial Building Products, in Rockwall, Texas.
JEB and Columbia Commercial Building Products were part of the architectural division of CGH.
Among its list of 83 unsecured creditors is Bedrock Logistics of Dallas, who owed nearly $ 54,000; Wright Express Fleet Services of Carol Stream, Illinois, owed over $ 16,000; and Estes Freight Lines of Richmond, Va., owed nearly $ 7,400.
Shaw Glass Holdings
In its Chapter 7 petition, Shaw Glass Holdings, doing business as Solar Seal Massachusetts, claims it has over 850 unsecured creditors. Among the top 20, several trucking and logistics companies, including Nationwide Logistics of Cincinnati, owed more than $ 13,150; Combined Transport of Central Point, Ore., Owed nearly $ 13,000; and Epes Logistics Service of Greensboro, owed nearly $ 5,800.
The company also lists major carriers like ABF Freight Systems of West Bridgewater, Massachusetts, FedEx Freight of Pittsburgh and UPS Supply Chain Solutions of Chicago among its unsecured creditors. However, the amounts were not included in his bankruptcy returns.
Former employees file complaints alleging violations of the WARN law
In late March, former employees filed a class action proposal against JEB, Consolidated Glass Holdings and Czech Asset Management. The complaint says the companies failed to provide workers at their Pedricktown glass factory with its more than 100 full-time employees at least 60 days’ notice of an impending shutdown, as required by federal law on the adjustment and retraining of workers (WARN). and the New Jersey Millville Dallas Aerospace Plant Job Loss Notification Act.
Former JEB employees said they were first put on leave in early February and lost their jobs permanently just over a month later.
A meeting of creditors of CGH and its subsidiaries is scheduled for Thursday in Wilmington, Delaware.
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