Linwood, Pennsylvania-Foamex International Inc. said 9 March that holders of a majority of the company's common stock have agreed to amendments to the company's charter to permit a reverse stock split at a ratio of one-for-four.
This stock split will affect all shares of common stock, Foamex said.
The group, a leading US producer of polyurethane products, has just come out of Chapter 11 bankruptcy protection.
"We believe this action will create more liquidity, increase awareness of Foamex's shares among potential investors, and enhance the company's value for all stockholders," said Raymond Mabus, chairman and chief executive officer, in the company's 9 March statement. ."