Foamex Emerges from Chapter 11
The company also announced that Mr. Gregory J. Christian, who had been executive vice president, chief restructuring officer, chief administrative officer, and general counsel of Foamex, has been named president of the company, effective immediately. Mr. Christian, who joined the company in 1996, will also continue to serve on the company's board of directors.
Raymond E. Mabus, chairman and chief executive officer of Foamex, said: "This is an extraordinary day for Foamex. It marks the close of one of the most challenging times in the history of the company, and more importantly, it is the beginning of a new era. Foamex is emerging as a stronger, leaner company, with a reinvigorated business and the financial flexibility needed to compete and be the industry leader. We have worked diligently with our employees, advisors and stakeholders to reach this point."
Mabus continued, "Central to our turnaround has been our efforts to transform the business from a traditional foam manufacturer to a market-focused provider of polyurethane foam-based solutions and specialty comfort products. Innovation is the cornerstone of our future. We are partnering with our customers to develop specialty solutions for diverse markets, while still continuing to be a full service provider of high quality products to the traditional markets we serve. We believe that executing this strategy, coupled with discipline, hard work and operational excellence will ensure our future success.
"Emerging from chapter 11 is extremely gratifying. I am pleased to say that the results of our restructuring process exceeded everyone's expectations--a true testament to the hard work of our employees, our restructuring team, and all of our stakeholders. Our situation is highly unusual in that all of Foamex's creditors will be paid in full in cash, and our equityholders will have the opportunity to retain their interests in Foamex. Today's news, combined with our operational performance, provides strong evidence that we have good momentum and a promising future."
Mabus continued, "Additionally, I would like to congratulate Greg on his well-deserved promotion to president of Foamex. This is truly a testament to the invaluable contributions he has made to the Company and the central role he played in the reorganization process. We look forward to his many contributions in the years ahead in this new capacity.
"I would also like to express thanks to Andy Thompson, executive vice president of foam and technical products, and Don Phillips, executive vice president of automotive products. With Greg, they have been instrumental in effectuating Foamex's turnaround and the company's strategic shift. As I've said, Foamex has a bright future and I look forward to working with these three leaders and the rest of our talented employees as we take Foamex to the next level."
In accordance with the plan, holders of allowed claims will be satisfied in full in cash. Additionally, the company's equityholders will retain their interests in Foamex, subject to dilution as a result of the issuance of additional common stock in connection with the rights offering, the call option and any common stock to be issued under the proposed management incentive plan and the existing key employee retention program or upon exercise of any stock options. Foamex has begun to make the initial distributions required under the plan, and expects to finish making all distributions required to be made on or about the effective date by February 15th.