Court approves Foamex financing plan

Linwood,Pa.– A U.S. Bankruptcy Court inDelawarehas approved a financing plan and disclosure statement for foam producer Foamex International, a move that could lead to the company’s emergence from Chapter 11 protection early next year.

Foamex chairman Raymond Mabus called the approval “a significant milestone” in the Chapter 11 process, and said it means Foamex can begin soliciting support for its reorganization plan. The court has scheduled a Jan. 18 hearing to consider confirmation of the plan, the company said.

Under terms of the plan, all secured and unsecured creditors, as well as the holders of Foamex bonds, will receive 100% of their allowed claims in cash. Existing common stockholders will keep their shares, but each share of preferred stock will be converted into 100 shares of common stock.

The company has commitments for up to $790 million in new loans and will raise $150 million in equity financing through a rights offering.

(By Larry Thomas, Business Editor at Furniture Today, HTT’s sister publication.)

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!