Linwood, PA, December 21, 2006--Foamex International has set December 29, 2006 at the close of trading as the record date for its previously-announced rights offering.
The company intends to distribute at no charge to each stockholder one non-transferable right for each share of common stock or Series B preferred stock held by such stockholder on the record date.
Each right issued to common stockholders will entitle the holder to purchase up to 2.52 shares of common stock, and each right issued to Series B preferred stockholders will entitle the holder to purchase up to 252 shares of common stock, each at $2.25 per share. The exact number of shares issuable upon the exercise of rights will be determined based upon the number of shares outstanding as of the record date.
The rights offering will commence on or about January 4, 2007. Stockholders who hold their shares through a bank, broker, or other nominee will receive the rights materials from their bank, broker, or other nominee.
Under normal settlement procedures, the company believes that shares of common stock purchased after the close of trading on December 26, 2006 are not likely to be settled by the December 29, 2006 record date.
Foamex is conducting the rights offering as part of the company's chapter 11 plan of reorganization and will use the funds raised to help make the payments required under the Plan. Consummation of the rights offering is subject to satisfaction of certain conditions, including confirmation of the plan by the Bankruptcy Court.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The rights may not be sold, given away or otherwise transferred. Only stockholders as of the record date can exercise the rights issued to them.
Copies of prospectuses relating to the rights offering may be obtained from Foamex International Inc.'s Investor Relations Department (1000 Columbia Avenue, Linwood, Pennsylvania 19061, (610) 859-3000). Other information about the Company's reorganization case is available on the Foamex web site at www.foamex.com/restructuring.
