Dielectric Seeks Protection with Chapter 11
Published: 15 April 2009
by Staff
The action is intended to give the company court protection from a breach of contract by customer and investor Isovolta AG.
In November, the company filed suit against not only Isovolta and its US subsidiary, Isofab Inc., but also two officers from the companies. The suit alleges that Isovolta infringed on Dielectric’s patented flat fiberglass fabric and submitted a fraudulent patent.
Dielectric also alleges that Isovolta attempted to restrict sales and to control the company’s business and technology in an attempt to eliminate Dielectric as an independent supplier to the electrical insulation industry.
The company plans to prosecute the complaint while under bankruptcy protection, according to Dielectric officials.
Despite layoffs in March, it does not plan to shutter the facility, according to Ken Beer, vice president of marketing. The company has continued to satisfy orders and remains operational. “It’s not our intent to do anything but grow our business,” he adds.
