Media, Pennsylvania - Major US polyurethane foam producer Foamex International Inc. has elected two new members -- Brandon Baer and Sarah Johnson, both of the D. E. Shaw & Co., L.P. investment group -- to its board of directors.
Commenting on the pair's "impressive backgrounds and experience," Jack Johnson, Foamex president and chief executive officer, said, "we believe they will make significant contributions in the areas we need in the current environment." He also acknowledged the advice, insights and experience provided by Seth Charnow and David Lyon as they leave the board, and said Foamex recognised the continued strong support of the D. E. Shaw group.
Baer is a senior vice president of D. E. Shaw & Co. LP and leads its deal structuring and execution team. Johnson is a vice president of D. E. Shaw and a member of the D. E. Shaw group's credit-related opportunities unit.
Foamex this week announced that it was talking to lenders about restructuring options, including a possible amendment to its First Lien Term Loan facility. This move follows sales declines over the last 12 months as a result of reduced US demand for foam products.
To continue restructuring its balance sheet, Foamex said, it has not made the $7.3 million interest payment on its First Lien and Second Lien Loans that was due by 21 Jan 2009. The group said it was likely to enter into a forbearance agreement with its lenders.