DOMFOAM
Canadian PU foam producer files for bankruptcy after found guilty of price fixing / Bayer reportedly one of the biggest creditors
Following numerous accusations of price fixing and an extensive government probe – see also Plasteurope.com of 14.04.2011 – Canadian PU foam producer Domfoam (Montreal, Quebec; www.domfoam.com), which claims to be “Canada’s largest polyurethane foam manufacturer”, filed for Chapter 15 creditor protection on 23 January 2012.
Media reports indicate that Domfoam faces numerous lawsuits in Ohio, where it filed for bankruptcy protection, following an earlier USD 12.5m settlement with Canada’s antitrust authorities. The wiretap evidence collected by investigators reportedly showed that Domfoam started fixing prices in early 1999, carrying on with its illicit activities for more than a decade. German chemical giant Bayer (Leverkusen; www.bayer.com), which had supplied the Canadian company with polyols, is reported to be one of Domfoam’s biggest creditors.
The bankruptcy filing also includes Domfoam affiliates Valle Foam (Brampton, Ontario / Canada) and A-Z Sponge & Foam Products (Annacis island, British Columbia / Canada; www.a-zfoam.com).
Media reports indicate that Domfoam faces numerous lawsuits in Ohio, where it filed for bankruptcy protection, following an earlier USD 12.5m settlement with Canada’s antitrust authorities. The wiretap evidence collected by investigators reportedly showed that Domfoam started fixing prices in early 1999, carrying on with its illicit activities for more than a decade. German chemical giant Bayer (Leverkusen; www.bayer.com), which had supplied the Canadian company with polyols, is reported to be one of Domfoam’s biggest creditors.
The bankruptcy filing also includes Domfoam affiliates Valle Foam (Brampton, Ontario / Canada) and A-Z Sponge & Foam Products (Annacis island, British Columbia / Canada; www.a-zfoam.com).
02.02.2012 Plasteurope.com [221455-0]
Published on 02.02.2012