Foamex may file Chapter 11
By Furniture Today Staff -- Furniture Today, September 5, 2005
Linwood, Pa. — Foamex, the largest supplier of foam for upholstered furniture and bedding, said last week it may file for Chapter 11 bankruptcy protection to restructure its balance sheet.
The company, burdened by debt problems for months, said its senior lenders had agreed to waive certain default provisions in credit agreements to give it more time to negotiate with a committee representing bondholders. Foamex said it hoped to convince bondholders to convert a substantial portion of its debt into equity.
The company missed a $51.6 million payment on some senior subordinated notes that matured on Aug. 15.
Foamex said that if it does seek bankruptcy protection, its senior lenders, Bank of America and Silver Point Finance, had agreed to provide debtor-in-possession financing.
"Importantly, these steps should have no effect on Foamex's day-to-day operations," said CEO Tom Chorman.
