Foamex Receives Court Approval to Access New Financing

Furniture World News

Foamex International Inc., a leading producer of polyurethane foam-based solutions and specialty comfort products used in the home furnishings industry announced that the U.S. Bankruptcy Court for the District of Delaware has granted the relief the Company requested in its First Day Motions filed in conjunction with its voluntary filing for reorganization under chapter 11 of the U.S. Bankruptcy Code. Foamex has now received Court authorization to, among other things: - Utilize up to $20 million of the Company’s $95 million debtor-in-possession (DIP) financing on 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; - Provide employee wages, reimbursements, health care coverage, and similar benefits without interruption; - Continue customer practices and programs; - Establish a limited critical vendor program; - Ensure the continuation of the Company’s cash management systems and other business operations. Jack Johnson, Foamex’s President and Chief Executive Officer, stated, “Receiving interim approval of the DIP financing greatly enhances our liquidity position at the outset of this process. Combined with the revenues generated from ongoing operations, the up to $20 million of initial DIP financing as well as the other First Day approvals will enable us to continue business as usual and remain focused on meeting the needs of our customers while we restructure our debt.” More information about Foamex’s reorganization case is available on the Company's web site at www.foamex.com/restructuring. About Foamex International Inc.: Foamex, headquartered in Media, PA, is a leading producer of polyurethane foam-based solutions and specialty comfort product. The Company services the bedding, furniture, carpet cushion and automotive markets and also manufactures high-performance polymers for diverse applications in the industrial, aerospace, defense, electronics and computer industries. For more information visit the Foamex web site at http://www.foamex.com.