On December 29, 2020, Chicago general contractor Ross Burton Design Build filed for Chapter 7 bankruptcy. The filing lists 18 contractors, material suppliers, and equipment lessors as creditors, all with nonpriority unsecured claims, according to the US Bankruptcy Court for the Northern District of Illinois.
Ross Burton Design Build claims in their bankruptcy petition that they owe nearly $275,000 to 33 reported creditors, all of which have unsecured claims. The general contracting service became a limited liability company in Illinois in 2013.
The Illinois Secretary of State lists Ross Burton Design Build’s status as “involuntary dissolution” as of December 19, 2019 — over a year before the GC’s bankruptcy filing date.
At the time of the bankruptcy filing in late December 2020, the GC reported the following:
- $274,803.81 in total liabilities
- $12,000 in total assets
- $0 in total checking
- $0 in accounts receivable
Between 2019 and the date of the bankruptcy filing, Ross Burton Design Build has listed $0 in gross revenue, according to the bankruptcy petition. In 2018, the GC reported $945,969 in gross revenue.
What is Chapter 7 bankruptcy?
A Chapter 7 bankruptcy filing requires a debtor’s assets to be liquidated, which in turn pays back creditors. Creditors with secured claims are typically the first to be paid, followed by priority unsecured claims, and then nonpriority unsecured claims.
Trustees are appointed during a Chapter 7 bankruptcy claim in order to convert the debtor’s nonexempt property into funds that will be then distributed to creditors.
Ross Burton Design Build lists 30+ unsecured creditors, no secured creditors
At the time of their bankruptcy filing, Ross Burton Design Build reported having 33 unsecured claims worth a combined $274,803.81. The GC does not list any secured claims in their bankruptcy filing, with 32 nonpriority unsecured claims and one priority unsecured.
The lone priority unsecured claim involves the IRS, regarding 2019 income taxes. The claim is listed with an unknown amount.
Of the 18 contractors, suppliers, and equipment lessors listed as credits with nonpriority unsecured claims, Chicago-based subcontractor Christopher Glass & Aluminum has the largest claim, which totals $19,846.75. The remaining 17 construction-related creditors include:
- ABC Supply Co., Inc. – $1,463.76
- Aetna Plywood, Inc. – $6,090.83
- Airgas USA, LLC – $1,952
- Fox Valley Fire and Safety – $147.34
- Green Grass, LLC – $11,961
- Groot, Inc. – $291.85
- Jesse Stone, Inc. – $25,000
- Kotour Mechanical Group, LLC – $5,350
- New Taylor Grass, Doors & Metal – $985
- On Time Concrete – $6,000
- Peoples Gas – $567.47
- Pinnacle Decorating, Inc. – $6,845
- Sky King Lift Rentals – $1,327.50
- United Resources – $950
- Vancouver Sign Group – $5,269.75
- Van Meter – $10,100.12
- Waste Management – $3,033.63
Ross Burton Design Build involved in pending contract dispute
According to their bankruptcy petition, Ross Burton Design Build is currently involved in a pending contract dispute being heard in Cook County. The plaintiff party is known as Christopher Stuart.
The complaint was first filed back in December of 2018. According to Cook County records, the case is set to be heard next on January 13, 2021.