Linwood, Pennsylvania-Foamex InternationalInc. has set close of trading on 29 Dec 2006 as the date of record for itspreviously announced rights offering.
The foam maker said it intends todistribute at no charge to each stockholder one non-transferable right for eachshare of common stock or Series B preferred stock held by such stockholder onthat date.
Each right issued to common stockholderswill entitle the holder to purchase up to 2.52 shares of common stock, and eachright issued to Series B preferred stockholders will entitle the holder topurchase up to 252 shares of common stock, each at $2.25 per share. Foamex saidthe rights offering will start on or about 4 Jan 2007.
Foamex is conducting the rights offering aspart of the its chapter 11 plan of reorganization. The group said it will usethe funds raised to help make the payments required under this plan. The rightsoffering must satisfy certain conditions, Foamex pointed out, includingconfirmation of the plan by the Bankruptcy Court.