Foamex Completes Reorganization and Emerges from Chapter 11
Monday February 12, 1:53 pm ET
Court Approved Plan Becomes Effective Today
Gregory J. Christian Named President of Company
LINWOOD, Pa.--(BUSINESS WIRE)--Foamex International Inc. (FMXIQ.PK) announced today that its Plan of Reorganization (the "Plan") has become effective and the Company has successfully emerged from chapter 11 bankruptcy protection.
http://biz.yahoo.com/bw/070212/20070212006207.html?.v=1
In accordance with the Plan, holders of allowed claims will be satisfied in full in cash. Additionally, the Company's equityholders will retain their interests in Foamex, subject to dilution as a result of the issuance of additional common stock in connection with the rights offering, the call option and any common stock to be issued under the proposed Management Incentive Plan and the existing Key Employee Retention Program or upon exercise of any stock options. Foamex has begun to make the initial distributions required under the Plan, and expects to finish making all distributions required to be made on or about the effective date by February 15th.
As previously announced, Foamex has secured a commitment from a group of lenders led by Bank of America, N.A. and Banc of America Securities LLC for up to $790 million of exit financing from which the Company will draw approximately $615 million upon its emergence from chapter 11. In connection with the previously announced rights offering and related equity commitment, which expired on January 31, 2007, and related agreements, the exit financing will be used by Foamex to repay the Debtor-In-Possession facility, to make other payments required upon exit from bankruptcy, and to ensure strong cash balances to conduct post-reorganization operations.
Foamex, headquartered in Linwood, PA, is the world's leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. Foamex has approximately 4,000 employees across more than 35 facilities in the U.S., Canada and Mexico. For more information visit the Foamex web site at http://www.foamex.com.
Monday February 12, 1:53 pm ET
Court Approved Plan Becomes Effective Today
Gregory J. Christian Named President of Company
LINWOOD, Pa.--(BUSINESS WIRE)--Foamex International Inc. (FMXIQ.PK) announced today that its Plan of Reorganization (the "Plan") has become effective and the Company has successfully emerged from chapter 11 bankruptcy protection.
http://biz.yahoo.com/bw/070212/20070212006207.html?.v=1
In accordance with the Plan, holders of allowed claims will be satisfied in full in cash. Additionally, the Company's equityholders will retain their interests in Foamex, subject to dilution as a result of the issuance of additional common stock in connection with the rights offering, the call option and any common stock to be issued under the proposed Management Incentive Plan and the existing Key Employee Retention Program or upon exercise of any stock options. Foamex has begun to make the initial distributions required under the Plan, and expects to finish making all distributions required to be made on or about the effective date by February 15th.
As previously announced, Foamex has secured a commitment from a group of lenders led by Bank of America, N.A. and Banc of America Securities LLC for up to $790 million of exit financing from which the Company will draw approximately $615 million upon its emergence from chapter 11. In connection with the previously announced rights offering and related equity commitment, which expired on January 31, 2007, and related agreements, the exit financing will be used by Foamex to repay the Debtor-In-Possession facility, to make other payments required upon exit from bankruptcy, and to ensure strong cash balances to conduct post-reorganization operations.
Foamex, headquartered in Linwood, PA, is the world's leading producer of polyurethane foam-based solutions and specialty comfort products. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. Foamex has approximately 4,000 employees across more than 35 facilities in the U.S., Canada and Mexico. For more information visit the Foamex web site at http://www.foamex.com.
