Fire-Suppression Company KFI Scouts for New Owner in Chapter 11

Kidde-Fenwal Inc., a maker of fire-suppression products, is using bankruptcy to scout for a new owner.

It also plans to use Chapter 11 to determine if it can access valuable insurance coverage related to a former subsidiary accused of making a type of foam that contained a cancer-causing “forever chemical.”

The Ashland, Massachusetts-based company has a good business and a “strong, healthy cash flow,” KFI bankruptcy lawyer Andrew Dietderich said Tuesday. But it’s struggling because of substantial litigation over fire-suppressing foam sold by a former subsidiary that allegedly contained trace amounts of a chemical called perfluorooctanoic acid ...