— Furniture Today,
LINWOOD, Pa. — Foam supplier Foamex International said it has secured an equity investment commitment that will help it emerge from Chapter 11 bankruptcy protection.


The company said it will make a $150 million rights offering to existing common and preferred shareholders.
 
Five shareholders — D.E. Shaws Laminar Portfolios, Goldman, Sachs & Co., Par IV Master Fund, Sunrise Partners and Sigma Capital Associates — have committed to fund any shortfall between $150 million and the actual proceeds, through the purchase of new preferred or common stock in the reorganized company.

Foamex also said its primary operating subsidiary, Foam-ex L.P., has received a commitment for up to $790 million in financing from a group of lenders led by Bank of America and the bank’s securities arm. The company said it expects to draw about $645 million as it emerges from Chapter 11.

Raymond Mabus, Foamex chairman and CEO, said the company expects to emerge from Chapter 11 in the first quarter of next year.

“Today’s announcement is the positive result of a lot of hard work — both by the people involved in the Chapter 11 process and by all of our employees who have produced such impressive results so far this year,” Mabus said.