Foamex Gets Court Approval To Access DIP Money

Media, PA, Feb. 25, 2009--Foamex International Inc. said Tuesday that it has received approval from a U.S. bankruptcy court to access financing that will allow the company to continue operating normally while it restructures its debt.

The U.S. Bankruptcy Court for the District of Delaware granted Foamex approval to use up to $20 million of the company's $95 million debtor-in-possession financing - which is used to keep a company in operation while it goes through bankruptcy proceedings.

The debtor-in-possession financing was provided by MatlinPatterson Global Opportunities Partners III LP and Bank of America. Foamex will seek final court approval for the full amount of the facility during a hearing on March 16.

The company is also authorized to pay its employees, serve its customers and continue other business operations.

"Receiving interim approval of the DIP financing greatly enhances our liquidity position at the outset of this process," said Foamex Chief Executive Jack Johnson.

Foamex filed for Chapter 11 bankruptcy protection last week to help restructure its balance sheet, which includes about $380 million in debt.