May 27 2009
Foamex International Inc., a leading producer of polyurethane foam-based solutions and specialty comfort products, announced today that the U.S. Bankruptcy Court for the District of Delaware has entered an order approving the sale of substantially all of Foamex's assets as a going concern to a group comprised of certain affiliates of MatlinPatterson Global Opportunities Partners III L.P. ("MatlinPatterson") and Black Diamond Capital Management, L.L.C. ("Black Diamond"). Foamex anticipates that both the closing of the transaction and the Company's emergence from Chapter 11 will occur in June 2009.
"We are delighted with the outcome of this process," said Jack Johnson, Foamex President and Chief Executive Officer. "As we had hoped for at the outset of the filing, Foamex has emerged from the process expeditiously and with a stronger balance sheet. I would like to thank MatlinPatterson for their help in getting us to this point by supporting the Company with the Stalking Horse Bid and providing DIP financing. We will move forward as a private company, building on the technological excellence and innovative leadership for which Foamex is known," he said.
Johnson continued, "We are excited to be joining forces with the MatlinPatterson/Black Diamond team and fully expect many benefits to flow to our customers by providing:
- Additional resources, which will greatly enhance Foamex's capabilities, increased innovation and ultimately more value to our customers;
- Access to MatlinPatterson/Black Diamond's expertise regarding acquisition and alternative financial investment strategies, each of which will provide Foamex with a stronger balance sheet and in turn our customers with a stronger and more versatile supplier; and
- Continuity of management and strategic direction, allowing the Company to continue to provide the high quality products and services that our customers demand."
Johnson added, "I would like to thank our valued customers, employees, and suppliers for their support during this process and for working with us faithfully to a successful outcome of this balance sheet restructuring."
In the next few weeks, Foamex will provide additional details on its emergence and the exciting next phase for the Company.