Price-Fixing Fine, Sales Drop Sink Canadian Foam Maker

Law360, New York (January 30, 2012, 5:46 PM EST) -- An Ohio bankruptcy judge consolidated Domfoam International Inc.'s Chapter 15 filings Thursday as the Canadian foam maker sought protection from U.S. creditors, after flagging sales and a $12.2 million price-fixing fine by Canadian authorities forced it into insolvency.

Bankruptcy Judge Mary Ann Whipple lumped together the cases of Quebec-based Domfoam, British Columbia-based A-Z Sponge and Foam Products Ltd. and Ontario-based Valle Foam Industries.

A Jan. 11 affidavit by CEO Tony Vallecoccia blamed the bankruptcy not only on the fines but on cheaply made foam products from...
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