Equity holders approve Foamex reorganization plan

By Staff -- Home Textiles Today, 1/26/2007 12:26:00 PM

Linwood,Pa.– Foamex International, which is poised to emerge from bankruptcy protection this quarter, said its equity holders have voted unanimously in favor of the company’s reorganization plan. The vote follows an earlier positive vote by holders of the foam supplier’s senior secured notes.

“Over the past several months, we have worked diligently to address the interests of all of our stakeholders in an effort to achieve the most value possible,” said Raymond Mabus, chairman and ceo. “We are pleased to have received the unanimous support of the equity holders.”

The company has also proposed the slate of directors who will oversee Foamex after it emerges from bankruptcy protection. The proposed board includes existing directors Mabus, executive vp Gregory Christian, and Thomas Higgins, a retired partner with Ernst & Young. Christian will become Foamex president after the plan is approved.

Proposed new directors are Robert Burke, founder and ceo of Par IV Capital Management; Seth Charnow, a representative of the D.E. Shaw Group; and Eugene Davis, chairman and ceo of Pirinate Consulting Group.

A hearing to consider confirmation of the reorganization plan is scheduled for Feb. 1.