Funding secure, Foamex ready to exit Ch.11

By Staff -- Home Textiles Today, 10/18/2006 11:45:00 AM

Linwood, Pa. – Foam supplier Foamex International said it has secured an equity investment commitment that will help it emerge from Chapter 11 bankruptcy protection.

The company said it will make a $150 million rights offering to existing common and preferred shareholders. Raymond Mabus, Foamex chairman and ceo, said the company expects to emerge from Chapter 11 in the first quarter of 2007.

Foamex also said its primary operating subsidiary, Foam-ex L.P., has received a commitment for up to $790 million in financing from a group of lenders led by Bank of America and the bank's securities arm. The company said it expects to draw about $645 million as it emerges from Chapter 11.

(This report was supplied by HTT sister publication Furniture Today.)