Foamex Files for Bankruptcy Again

Media, PA, Feb. 18, 2009--Foamex International filed for Chapter 11 bankruptcy protection for the second time in four years to restructure its debt.

The company is also seeking bankruptcy court approval of up to $95 million in debtor-in-possession financing provided by MatlinPatterson Global Opportunities Partners III LP and Bank of America.

Foamex first filed for Chapter 11 in September 2005 and emerged from bankruptcy protection in February 2007, with a reorganization plan that repaid creditors in full and allowed equity holders to retain their interests in the company.

In documents filed with the court, Foamex listed assets of about $364 million and liabilities of about $380 million.

"Although we have reduced debt by about $240 million to $380 million over the past two years, we cannot support the existing heavy debt load in the current operating environment," Chief Executive Jack Johnson said in a statement.