Foamex Gains Reorg. Approval
February 10, 2007-- Home Textiles Today,
The United States Bankruptcy Court for the District of Delaware has confirmed the Second Amended Joint Plan of Reorganization for cushioning supplier Foamex International, which is poised to emerge from bankruptcy protection on Feb. 12.
Foamex previously said its equity holders had voted unanimously in favor of the company's reorganization plan. That vote followed 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 Chapter 11. 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.
Foamex said the exit financing, up to $790 million, will be used by Foamex to repay the debtor-in-possession facility, to make other required payments, and to ensure strong cash balances to conduct operations.
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