Foamex to emerge from Chapter 11 this month

-- Home Textiles Today, 5/29/2009 1:37:00 PM

Media, Pa. – Foamex International Inc., a producer of polyurethane foam-based solutions and specialty comfort products, announced the U.S. Bankruptcy Court for the District of Delaware has entered an order approving the sale of substantially all of the company’s assets as a going concern to a group comprised of certain affiliates of MatlinPatterson Global Opportunities Partners III L.P.

Foamex said it anticipates that both the closing of the transaction and the company’s emergence from Chapter 11 will take place this month.

“We are delighted with the outcome of this process,” said Jack Johnson, Foamex president and ceo. “As we had hoped for at the outset of the filing, Foamex has emerged from the process expeditiously and with a stronger balance sheet.”

He extended thanks to MatlinPatterson CQ “for their help in getting us to this point by supporting the company with the Stalking Horse bid and providing DIP financing. We will move forward as a private company, building on the technological excellence and innovative leadership for which Foamex is known.”

Johnson added that the company is looking forward to joining forces with the MatlinPatterson/Black Diamond team. The new corporate structure, he said, will provide Foamex with additional resources to enhance its capabilities and innovation as well as a continuity of management and strategic direction.

Access to MatlinPatterson/Black Diamond’s expertise regarding acquisition and alternative financial investment strategies “will provide Foamex with a stronger balance sheet,” he added.

In the next few weeks, Foamex said it will provide additional details on its emergence and the next phase for the company.