Linwood, PA, October 24, 2006--Foamex International said the company and certain of its subsidiaries together with its primary operating subsidiary, Foamex L.P., and the other Foamex entities that are Chapter 11 debtors, collectively have filed their First Amended Plan of Reorganization and related amended Disclosure Statement with the U.S. Bankruptcy Court for the District of Delaware.
A hearing to consider the adequacy of the disclosure statement is currently scheduled for November 21, 2006. Following Bankruptcy Court approval of the Disclosure Statement, the company can begin the process of soliciting votes for approval of the Amended Plan.
On October 13, 2006, the company announced that it had received a commitment for a new equity investment, and together with Foamex L.P., had received a commitment for exit financing to fund the company's emergence from Chapter 11. These commitments are subject to the satisfaction of certain conditions, as described therein. As a part of the equity investment commitment from certain significant equityholders, the company and such holders also reached agreement on the principal terms of the amended plan. Those terms, which were previously summarized in the Company's 8-K filing on October 16, 2006, are embodied in the amended plan.
The proposed debt and equity commitments and related transactions described in the amended plan remain subject to certain material conditions, including the completion of final documentation, satisfaction of certain conditions precedent, and entry of orders by the bankruptcy court approving the related commitment letters and the adequacy of the disclosure statement and confirming the amended plan. There can be no assurance that the bankruptcy court will enter such orders, that parties entitled to vote on the Amended Plan will vote in favor of the amended plan, that final documentation will be reached on terms satisfactory to all parties or that the other conditions will be satisfied. Subject to receipt of all required approvals, the company expects to emerge from chapter 11 during the first quarter of 2007.
