Court approves Foamex chapter 11 interim funding

03-Mar-09
Foamex International Inc., Pennsylvania-based leading producer of polyurethane foam-based solutions and specialty comfort products, announced that the U.S. Bankruptcy Court for the District of Delaware has granted the relief requested by it in its First Day Motions filed in conjunction with its voluntary filing for reorganization under chapter 11 of the U.S. Bankruptcy Code. Under the relief granted, the company can now use upto US$20 mln of the its US$95 mln debtor-in-possession (DIP) possession financing an interim basis to satisfy customary obligations associated with its ongoing operations as it seeks to restructure its balance sheet. A hearing at which the Company will seek final court approval for the full amount of the DIP facility and other First Day Motions has been scheduled for March 16, 2009. As a result, employee wages, reimbursements, health care coverage, and similar benefits will not be affected. The company will continue customer practices and programs and ensure continuation of its cash management systems and other business operations.
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