With a reported $0 in total checking, window contractor and supplier Preferred Window Products filed for Chapter 7 bankruptcy on December 3, 2020, according to filing documents released by the US Bankruptcy Court for the Eastern District of California.
Preferred Window Products, which is headquartered in Fairfield, California, claims in their bankruptcy filing that they owe $4,858,714.64 in unsecured claims to 36 creditors — 15 of which are contractors, material suppliers, and property owners.
At the time of their bankruptcy filing in December of 2020, Preferred Window Products reported having:
- $4,858,714.64 in total liabilities
- $0 in total assets
- $0 in total checking
- $0 in accounts receivable
What is Chapter 7 Bankruptcy?
When a business files for chapter 7 bankruptcy, the debtor’s business operations cease. Individuals who live in the US, own a business, or own property in the country are also entitled to file for Chapter 7 bankruptcy.
After filing, an individual can keep certain exempt property. However, most liens will survive, including mechanics lien filings against a property, auto loans, and real estate mortgages.
A trustee of the debtor’s business then must sell all of their remaining assets, along with distributing its proceeds to the debtor’s creditors. If there is any residual amount left over, it is returned to the owners of the bankrupt business.
This is all known as “liquidation bankruptcy.” As defined by USCourts.gov, liquidation is “the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.”
Chapter 7 bankruptcy greatly differs from the likes of a Chapter 11 or Chapter 13 filing in that these forms of filings reorganize the debtor’s assets.
Preferred Window Products reports 36 unsecured claims worth $4.8M
At the time of their bankruptcy filing, Preferred Window Products reported having 36 unsecured claims worth a combined $4.8 million.
Of the 36 creditors, 15 are contractors, material suppliers, and property owners:
- Abatix – $244
- Anderson Logistics – $226,641
- Associated Materials, Inc. – $3,026,043
- Blake Properties – $333,404
- C.R. Laurence Co – $478.26
- Haulaway Storage Containers – $1,559
- La Cantina Doors – $28,911
- Ply Gem Pacific Windows – $52,006
- Ramos Oil – $43,629
- Republic Services #846 – $2,854
- Sunstate Equipment Co. – $1,184
- Trulite Glass & Aluminum – $1,932
- Western Window Systems – $886,536
- White Cap Const. Supply – $16,155
- Windor, Inc. – $14,696
According to Preferred Window Products official bankruptcy filing, the window contractor and supplier has no secured claims.