After 42 years in business, Illinois contractor Abari Construction, Inc. filed a voluntary petition for Chapter 7 bankruptcy on January 6, 2021, according to the US Bankruptcy Court for the Northern District of Illinois.
The contractor, based in Bensenville, Illinois, lists 58 contractors, material suppliers, and equipment lessors in their petition, and currently owes a combined $3.4 million to 90 total creditors.
Abari Construction’s bankruptcy petition lists three secured claims worth a combined $240,031.39, and 87 nonpriority unsecured claims worth a combined $3,174,031.85.
The bankruptcy filing also states that Abari Construction is involved in 17 pending legal cases, including unpaid construction work claims — known as mechanics liens — as well as contract disputes.
According to the Illinois Secretary of State, Abari Construction’s status is still listed as “active” after being incorporated in June of 1978.
In their bankruptcy petition, between March 1, 2019, and February 29, 2020, Abari Construction reported $7,367,333 in gross revenue. Between March 1, 2020, and the January 6, 2020 bankruptcy filing date, Abari Construction reported just $21,648 in gross revenue.
At the time of their bankruptcy filing in January 2021, Abari Construction reported the following:
- $3,414,063.24 in total liabilities
- $2,868,277.59 in total assets
- $1,048.59 in total checking
- $2,350,177 in accounts receivable
Under a Chapter 7 bankruptcy filing, a debtor’s assets are liquidated. The subsequent funds are then distributed to pay creditors back. A creditor with a secured claim is typically paid out first, followed by creditors with priority unsecured claims and then nonpriority unsecured claims.
Abari Construction’s bankruptcy filing lists three secured claims. These include:
- Ally Financial – $28,072.32
- Ford Credit – $23,383.86
- Village Bank & Trust – $188,575.21
The Chicago Carpenters Trust Funds is named as a creditor with a nonpriority unsecured claim worth $39,647.16. The Chicago Laborers’ and Welfare Funds is also listed with a nonpriority unsecured claim tallying $240,959.99.
Of the 58 construction-related entities listed as creditors in Abari Construction’s bankruptcy petition, ready-mix concrete supplier Ozinga Chicago is listed with the largest claim valued at $524,280.52.
The remaining 57 contractors, material suppliers, and equipment lessors listed in the bankruptcy filing include:
- Acura Inc. – $311,627
- Altorfer Industries – $155.95
- ARC Logistics – $1,575
- Atlas Bobcat – $10,367.13
- C&M Supply – $4,793.65
- Carpenters Benefits Funds – $1,188.26
- CCS Chicago Contractors Supplies – $16,701.55
- Cement Masons Union Local 502 Fringe Benefit Funds – $102,028.79
- Chicago Tire – $9,259.66
- Chicagoland Construction Safety – $16.95
- Chlorinating Ltd. Inc. – $1,211
- CMC Paving – $64,024.40
- Cobra Concrete Cutting – $550
- ComEd – $1,399.09
- Construction Industry Service – $16.95
- Contech Engineered Solutions – $4,007.50
- Crush-Crete, Inc. – $51,099.75
- Efficient Trucking, Inc. – $12,920
- Elmhurst-Chicago Stone Company – $17,607.01
- Fox Valley Construction Workers – $89,361.84
- Frank Howard (contractor) – $750
- Ground Engineering Consultants – $810
- H&H Stone LLC – $5,625
- Hecker and Company – $18,522.78
- Home Depot – $217.66
- Integrity Environmental Services – $2,475
- Kapur & Associates – $7,722.50
- Lee Jensen Sales Co. – $38,232.99
- Lucky’s Energy Service – $15,928.67
- M501 Trucking – $4,184.50
- Ma Rebar – $75,988.91
- Macklin Incorporated – $304.83
- McCann Industries – $1,534.75
- Meyer Concrete Pumping – $17.63
- Mid American Water – $95,666.73
- Midwest Operating Engineers – $134,424.79
- Napa Auto Parts – $177.18
- Natural Creations – $6,886.25
- Northern Contracting, Inc. – $49,366.72
- Ozinga Material – $5,583.56
- Prairie Material Sales Inc. – $119,024
- R.W. Dunteman – $3,459.43
- R.W. Engineering & Surveying – $420
- Ready Refresh – $111.02
- Reliable Asphalt Corp. – $2,193.36
- Rochelle Waste Disposal – $100
- Rotec – $3,799
- Rush Truck Centers – $2,976.38
- Sunset Logistics – $15,530.24
- United Rentals – $2,093.15
- Utility Concrete Products – $88,247.29
- Vulcan Construction Materials – $315.04
- Waste Management – $408.58
- Welch Bros. – $121,346.12
- Welsch Ready Mix, Inc. – $111,651.68
- White Cap Construction Supply – $28,553.93
- Zenger’s – $644.26
Abari Construction faced with 17 legal disputes
According to Abari Construction’s bankruptcy petition, the contractor is involved in 17 legal disputes concerning mechanics lien filings, contract disputes, foreclosure of public funds, and Employee Retirement Income Security Act (ERISA) cases.
Abari Construction’s bankruptcy petition lists three mechanics lien cases being heard with the Circuit Court of Will County. According to the filing, Abari Construction is the defendant in only one of the lien cases with Ozinga Ready Mix.
The filing also lists two pending mechanics lien foreclosures with Mid American Water and Hecker and Company. A lien foreclosure, also known as “enforcing” a lien, is essentially a lawsuit filing to bring the unpaid work claim to court.
Abari is also facing contract lawsuits from four contractors.
CCS Contractor Equipment & Supply is involved in a pending contract dispute with Abari Construction that is being heard with the Circuit Court of Cook County.
Two separate contract disputes are being heard with the Circuit Court of DuPage County involving Elmhurst-Chicago Stone Co. and S.W.S. Group against Abari Construction.
Additionally, Welch Bros. has a pending contract lawsuit with Abari Construction, currently being heard with the Circuit Court of Kane County.
In addition to the liens and lawsuits Abari Construction is the defendant party in six pending lawsuits involving ERISA in the U.S. District Court.
The plaintiff parties include:
- Chicago Laborers’ Pension Fund
- Trustees of the Chicago Regional Council of Carpenters Pension Fund
- Midwest Operating Engineers Welfare Fund
- Fox Valley & Vicinity Construction Workers Welfare Fund
Each case is being heard with the US District Court for the Northern District of Illinois.