Investment Company To Purchase Foamex Assets

Media, PA, March 26, 2009-Foamex International said on Wednesday that it has reached a deal to sell its assets to an affiliate of debt investment firm MatlinPatterson.

MatlinPatterson intends to purchase the company's assets as a going concern, subject to approval of the bankruptcy court and the results of a bankruptcy auction in May, Foamex said.

MatlinPatterson and Bank of America have served as debtor-in-posession lenders to Foamex, providing up to $95 million to keep the company operating in bankruptcy.

Foamex filed for bankruptcy protection in February. It was the second bankruptcy filing for the company in four years.

The company makes foam products used in bedding, furniture, carpet cushions and autos.