Chicago-based general contractor Foster Design Build – SBD Corporation, in debt for over $2 million to nearly 40 creditors, filed for Chapter 7 bankruptcy on January 19, 2021.
Foster Design Build- SBD Corporation, owned by Chicago builder Robert Berg, filed for bankruptcy with the U.S. Bankruptcy Court in Illinois. The company lists $2 million in liabilities, including $922,000 owed to a separate LLC also owned by Berg, FDB Construction & Development.
Foster Design Build – SBD Corporation has been subject to at least 14 unpaid construction work claims from trade partners in recent years.
According to documents filed with the Cook County clerk’s office, Foster Design Building was the defendant in all 14 claims between April 2012 and February 2018. Each claim has since been closed.
Unpaid construction work claims, commonly referred to as mechanics liens, are filed by contractors left unpaid at projects. The lien encumbers the serviced project’s property title, giving the contractor a security interest in the property until the claim has been satisfied.
Foster Design Build – SBD Corporation reports $2.2 million in liabilities against just $59,781 in assets, all in uncollected accounts receivable.
A Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, involves the sale of the debtor’s nonexempt property. The resulting proceeds are then disbursed in order to pay back creditors.
Typically, creditors with secured claims are first to be paid with available funds. Priority unsecured and nonpriority unsecured creditors may only recover if any money remains after settling the secured claims.
Foster Design Build – SBD Corporation reported 37 total creditors with $2.2 million in unsecured claims.
Besides FDB Construction & Development’s $922,211.17 claim, other contractor creditors include:
- AB Edwards Enterprises
- Arman Plumbing & Mechanical
- Ashland Propane / All Air Solutions
- Bay Remediation
- DK Build, Corp
- Pro Reconstruction Experts Inc
- Murray Millwork