Foamex Receives Court Approval of First Day Motion
Linwood, PA, September 21, 2005--Foamex said it has received approval from the Bankruptcy Court for the company's "first day" motions that will enable its operations to proceed smoothly and without interruption throughout its reorganization case.
Included among the 12 motions approved by the Court are those that permit the company to continue to pay in the ordinary course employee salaries, wages, and benefits, amounts owing in connection with the Company's workers' compensation and other insurance policies, and certain other pre-bankruptcy amounts; utilize its existing cash management systems; continue its customer programs uninterrupted; pay vendors for certain critical goods and services provided prior to the Chapter 11 case; access, on an interim basis, up to $221 million of the $240 million debtor-in-possession (DIP) financing arranged for the Company by Bank of America N.A. and obtain a new $80 million debtor in possession term loan from Silver Point Finance, LLC the proceeds of which will be used to repay a pre-petition term loan owed to that lender.
Tom Chorman, Foamex's president and chief executive officer, stated, "The court's approval of our first day motions will ensure that Foamex can conduct business as usual and remain focused on serving our customers as we go through this restructuring process. I am pleased that this process is beginning as smoothly as we expected, and I am very optimistic that we will continue to make solid progress."
