Judge Orders Foamex To Restart Auction of Assets

Media, PA, May 22, 2009--Foamex International Inc. was ordered to restart an auction for its assets after the outcome was challenged by lenders owed $325 million.

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Del. said Thursday that bids may top the $141.5 million offered by Wayzata Capital Investment Partners LLC, which won the first auction.

He gave lenders, including MatlinPatterson Global Advisors LLC, permission to offer a so-called credit bid when the auction resumes. That means the lenders, should they win, would trade debt they are owed for equity in a reorganized Foamex.