MEDIA, Pa. (March 31, 2009)—U.S. foam giant Foamex International Inc. said it has agreed to sell almost all of its assets to an affiliate of MatlinPatterson Global Opportunities Partners III L.P.
Foamex recently went into Chapter 11 bankruptcy protection for the second time in four years, citing the difficult economic climate and the group's substantial debt burden—more than $380 million—as contributing factors.
MatlinPatterson, along with Bank of America, was funding Media-headquartered Foamex's $95 million borrowing as a debtor in possession.
According to Foamex, MatlinPatterson will purchase Foamex's assets as a going concern, assuming the group's ongoing obligations to customers and vendors and offering continued employment to workers.
The sale depends on approval of the bankruptcy court and on other offers which may be made at an auction to be held in May, Foamex said.
Following approval of the sale, "Foamex businesses will emerge from Chapter 11 as a stable and competitive private company with a much stronger balance sheet," said Jack Johnson, president and chief executive officer, in the statement.
Foamex calls itself the "world's leading producer" of polyurethane foam and specialty comfort products, serving markets in bedding, furniture, carpet cushion and automotive, as well as making high-performance technical foam for other uses in industry, aerospace, defense, electronics and the computer sector.