Media, Pennsylvania - Major US foam group Foamex International Inc., which went into Chapter 11 bankruptcy protection on 18 Feb 2009, has got the OK from the US Bankruptcy Court in Delaware for up to $95 million of debtor-in-possession (DIP) financing. The cash will be provided by MatlinPatterson Global Opportunities Partners III LP and Bank of America.
Describing this DIP financing as "a key step forward as we restructure our debt and position Foamex for a stable future," Jack Johnson, Foamex's president and chief executive officer, said, "The DIP financing, coupled with cash flow from operations gives the company the financial flexibility to maintain normal operations and continue to provide our customers with innovative products and solutions without interruption."
Media, Pennsylvania-headquartered Foamex claims to be the world's leading producer of polyurethane foam and speciality comfort product. As well as supplying the bedding, furniture, carpet cushion and automotive markets, it also makes high-performance polymers for uses in industry, aerospace, defence, electronics and the computer sector.