Republic Windows Trustee Files Complaint in Bankruptcy Court Against Sound SolutionsJanuary 4th, 2011 by DWM Magazine
Republic Windows is back in the news again, as Philip D. Levey, Chapter 7 Trustee of the Bankruptcy Estate of Republic Windows and Doors LLC, has filed suit against Sound Solutions Windows and Doors LLC, formerly known as RS Windows and Doors LLC and Chicago Lead Safe Window Services LLC.
Levey alleges that the assets of RS Windows and Doors and Chicago Lead Safe Window Services were transferred to Sound Solutions Windows and Doors, owned by Ronald Spielman, and the company owes the Republic estate more than $209,000 “on account of goods and services provided by Republic to Sound Solutions.”
Levey says on August 24, 2010, he demanded that Sound Solutions pay the unpaid obligation to the estate, but that no payment has been received.
In addition, the complaint claims the defendant also completed “fraudulent transfers.”
“For example, in late 2005 or early 2006, the Debtor transferred its acoustical window business unit and its lead-based paint window business, along with certain contracts related to such business units, to one or all of the Defendants for no consideration and for the benefit of Spielman (the “Business Unit Transfer”). On information and belief, the assets were transferred initially to RS Windows and Doors and Chicago Lead Safe Window Services, and then were transferred to Sound Solutions, which on information and belief is the surviving entity,” reads the complaint.
Among the assets allegedly transferred as part of the Business Unit Transfer were the business units’ know- how, trade secrets, contracts, window inventory, equipment, vehicles, business opportunities and related items, according to the complaint. The transferred property also included the right to participate in the Chicago Lead Abatement program and certain contracts associated with the business units.
The suit was filed on December 11, 2010, in the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division.
Spielman had not returned DWM’s calls requesting a comment at press time.