Foamex gains reorganization approval

By Staff -- Home Textiles Today, 2/7/2007 1:39:00 PM

Linwood, Pa. – Foamex is poised to emerge from bankruptcy protection on Feb. 12 following bankruptcy court approval of its reorganization plan.

Foamex previously said its equity holders voted unanimously in favor of the plan.

“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.

The company also named a new slate of directors, which 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.

The company has secured exit financing of up to $790 million, which will be used by to repay its Debtor-In-Possession facility, make other required payments, and ensure strong cash balances for ongoing operations.