Chapter 7 Bankruptcy Filing Halts Chinese Drywall Insurance Coverage Case

PHILADELPHIA — An insurance coverage action filed by a Pennsylvania-based sourcing agent that sold Chinese drywall to wholesalers along the Gulf Coast has been put on hold after the company filed for bankruptcy late last month.

According to a May 6 filing in U.S. District Court for the Eastern District of Pennsylvania, all pending motions have been denied without prejudice and the case placed in “suspense status” as a result of Devon International Industries Inc.’s April 23 voluntary Chapter 7 petition.

Devon was named in numerous Chinese drywall lawsuits as a result of its purchase of large quantities of …