The restructuring of Foamex's balance sheet may be implemented by means of a case under chapter 11 of the Bankruptcy Code, possibly through a pre-arranged plan of reorganization. However, no assurance can be given that a consensual plan will be agreed upon. In the event the Company commences a chapter 11 case, Bank of America and Silver Point have committed to provide debtor-in-possession (DIP) financing, which will roll the existing pre-petition facilities, subject to c their t approval. Bank of America and Silver Point have also agreed to commitments for exit financing upon the Company's emergence from chapter 11, subject to an acceptable plan of reorganization and other standard requirements for similar financing proposals.
"Today's actions are consistent with plans to position Foamex for future success," said Tom Chorman, President and Chief Executive Officer. "They are pleased to have the ongoing support of senior lenders and they will continue to negotiate with their other debt holders to achieve a solution to the legacy balance sheet issues that will result in a much stronger company able to generate long-term value.
"Importantly, these steps and the ongoing negotiations should have no effect on Foamex's day-to-day operations. They remain committed to continuing to provide to customers with the high level of service and products to which they are accustomed and to maintaining strong supplier relationships," Chorman continued.
Foamex also stated that it will be filing with the Securities and Exchange Commission (SEC) for a five day extension of the August 12, 2005 filing deadline for its Quarterly Report on Form 10-Q for the fiscal quarter ended July 3, 2005 pursuant to rule 12b-25. In addition, the Company announced today that Gregory J. Christian, Executive Vice President, General Counsel and Secretary, has also been named Chief Restructuring Officer.
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