Foamex Fails To Make Interest Payment

Media, PA, Jan. 23, 2009--Foamex International said it is in discussions with lenders regarding restructuring options.

In addition, in order to continue the process for a restructuring of its balance sheet, Foamex has not made the $7.3 million interest payment on its First Lien and Second Lien Loans that was due by Jan. 21.

Foamex anticipates entering into a forbearance agreement with each of its Revolving Credit facility lenders and its First Lien lenders shortly.

“Today’s actions are consistent with our number one priority over the past two years to deleverage,” said CEO Jack Johnson.

“We will continue to negotiate with our First Lien lenders to strengthen our business by restructuring our debt. We have reduced debt by approximately $240 million in the last two years.”