Canadian foamer Domfoam International Inc. has filed for bankruptcy protection in the US after flagging sales and a million-dollar fine over price-fixing led the company into insolvency, PlasticsNews.com reported. Domfoam filed for Chapter 15 protection in the U.S. Bankruptcy Court in Toledo, where it faced more than a dozen lawsuits over the inflated prices it charged for its foam that goes into carpet underlay, furniture and bedding, according to a report from Dow Jones.
Chapter 15 Headlines
Struggling Catalyst Paper Corp. has received the go-ahead from a court in British Columbia to begin a planned restructuring, while at the same time filing for protection from creditors in the United States, The Globe and Mail reported. The Richmond, B.C.,-based company said Wednesday a B.C. court had issued an initial order under the Canada Business Corporations Act to begin the restructuring process. The plan would see bondholders take control of the firm. It would also reduce its overall debt by $315.4-million and cut annual cash interest payments by $25.5-million.
Two Congressmen from opposite sides of the aisle are calling on the Mexican government to take action in Vitro S.A.B.'s restructuring, which they say could set a "dangerous precedent" that will hurt investors in the Mexican glass company and future cross-border investment, Dow Jones Daily Bankruptcy Review reported. Rep. Jared Polis (D., Colo.) and Rep. Patrick Meehan (R., Pa.) sent a letter last week to the Mexican Embassy in Washington, D.C., warning about the danger of allowing Vitro's pending restructuring to proceed.
Vitro S.A.B.'s bondholders are pushing to move forward with a legal battle that could cost $1.35 billion or more, calling the Mexican glassmaker's bid to stop them a meritless "act of pure gamesmanship," Dow Jones Daily Bankruptcy Review reported. An informal group of bondholders and bond trustee Wilmington Trust separately asked the U.S. Bankruptcy Court in Dallas Thursday to deny Vitro's request to enforce the shield of bankruptcy currently protecting the company from litigation, according to court papers.
India mining giant Ashapura Minechem Ltd. filed for Chapter 15 bankruptcy protection Tuesday in U.S. Bankruptcy Court in Manhattan in a move to block foreign shipping companies that won a $125 million legal judgment against it from raiding the company's U.S. bank accounts, Dow Jones Daily Bankruptcy Review reported. The Mumbai-based company, a mineral miner and processor with debts topping $223.4 million, argued that the seizure of its U.S.-based assets would jeopardize the financial overhaul underway in its home country.
Vitro SAB won U.S. recognition of its ongoing Mexican restructuring proceeding, a decision that shields U.S. assets from debt collection attempts by angry creditors, Dow Jones Daily Bankruptcy Review reported. Judge Harlin D. Hale of the U.S. Bankruptcy Court in Dallas signed off on the Mexican glass maker's Chapter 15 petition Thursday. Read more. (Subscription required.)
Tokio Marine Europe Insurance Ltd, a part of the Tokio Marine Group, said it filed a petition for protection from creditors under Chapter 15 in U.S. bankruptcy court in Manhattan, London South East reported on a Reuters story. The company, which underwrites commercial property, casualty and marine insurance, in a court filing on Monday listed assets of more than $100 million and liabilities of more than $100 million.
Hong Kong-based Grande Holdings Ltd., which owns such global consumer electronic brands as Nakamichi, Akai and Sansui, is seeking court protection from its U.S. creditors, Dow Jones Daily Bankruptcy Review reported. Grande reported assets and debts each in the range of $100 million to $500 million in the Chapter 15 bankruptcy petition it filed Tuesday with the U.S. Bankruptcy Court in Manhattan, court papers show.
Blockbuster Inc.'s Canadian subsidiary on Thursday got a 14-day extension to keep using the Blockbuster name through the middle of July, as the video-rental company sorts out issues on both sides of the border, Dow Jones Daily Bankruptcy Review reported. Without the agreement, Blockbuster Canada would have been forced by new Blockbuster owner Dish Network Corp. to stop using the Blockbuster name on June 30. After about two hours privately meeting with Judge Burton R. Lifland of the U.S.
Dish Network Corp. is threatening Blockbuster Canada with the loss of its use of the Blockbuster logo, as part of a strategy to acquire its assets, Blockbuster Canada Co. said, Bloomberg reported. Blockbuster’s U.S. business, acquired by Dish, has asked for bankruptcy court permission to end an agreement with the Canadian unit over trademarks, Grant Thornton Ltd., a receiver for the Canadian assets said in court papers filed in Manhattan court today.