LINWOOD, Pa. (Feb. 12) — Foamex International Inc. has emerged from Chapter 11 bankruptcy protection after its plan of reorganization was approved by the U.S. Bankruptcy Court for the District of Delaware today.
Under the plan, companies with allowed claims against Foamex will be paid in full, the company said. Foamex, which produces flexible polyurethane foam products, entered bankruptcy protection in September 2005.
Foamex also emerges with a new president. Gregory J. Christian, who joined the company in 1996, was promoted to the top post. He had been serving as executive vice president, chief restructuring officer, chief administrative officer and general counsel.
Foamex International will conduct a $150 million rights offering to existing common and preferred shareholders as part of the plan, the firm said.
Chairman and CEO Raymond E. Mabus said it was an extraordinary day for Foamex and the beginning of a new era. The firm is emerging as a stronger, leaner company, he said, and it has the financial flexibility needed to compete and be an industry leader.