New Foamex Plan Offers Recovery For Shareholders

Law360, New York (October 5, 2006, 12:00 AM EDT) -- In a move that bodes well for shareholders, Foamex International Inc. intends to submit a new reorganization plan that will set aside equity for current shareholders, according to an attorney for the bankrupt company.

Brian Hermann, Foamex’s top inside attorney, said Thursday the company will depend on new equity financing from a rights offering and from debt financing to pay off creditors.

While Foamex has already received debt financing, it is still talking with large institutional investors, including D.E. Shaw & Co. and Goldman Sachs, about...
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