IRS, Trustee Object To Foamex Plan

Law360, New York (January 5, 2007, 12:00 AM EST) -- As Foamex International Inc. prepares to try to convince a bankruptcy judge of the strength of its Chapter 11 reorganization plan, objections have flown into court from parties including the U.S. Trustee and the Internal Revenue Service.

The IRS, which has an $8,612 unsecured priority claim against Foamex, argues that the administrative bar date is unreasonably short. “The IRS objects to the plan to the extent it fails to preserve the setoff and recoupment rights of the IRS.”

The IRS also argues that the plan fails...
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