Trustee: Bankrupt Printer Took Assets
ALBANY, NY—As much as $1.2 million was illegally taken from Tech Valley Printing by shareholders. The Albany Times Union reported that the trustee overseeing the defunct printer's Chapter 7 proceedings filed a complaint in U.S. Bankruptcy Court alleging that payments were made while the firm was insolvent during a one-year period leading up to its April 2008 filing.
The Watervliet, NY-based company employed 130 at one point, but closed its doors months before the liquidation bankruptcy filing, according to the Times Union. It owed $6 million to creditors at the time.
It is illegal for business owners to shift assets to shield them from creditors, even prior to a bankruptcy filing.