Company could emerge from Chapter 11 early next year
\nLINWOOD, Pa. \u00e2\u20ac\u201d A U.S. Bankruptcy Court in Delaware has
\n\t\t
\napproved a financing plan and disclosure statement for foam producer Foamex International, a move that could lead to the company\u00e2\u20ac\u2122s emergence from Chapter 11 protection early next year.<\/p>\n
Foamex Chairman Raymond Mabus Jr. called the approval \u00e2\u20ac\u0153a significant milestone\u00e2\u20ac\u009d in the Chapter 11 process, and said it means Foamex can begin soliciting support for its reorganization plan.<\/p>\n
\u00e2\u20ac\u0153This moves us closer to our ultimate goal of emerging from Chapter 11 as a stronger company, better positioned to compete in the marketplace,\u00e2\u20ac\u009d Mabus said.<\/p>\n
The court has scheduled a Jan. 18 hearing to consider confirmation of the reorganization plan, the company said.<\/p>\n
Under terms of the plan, all secured and unsecured creditors, as well as the holders of Foamex bonds, will receive 100% of their allowed claims in cash. Existing common stockholders will keep their shares, but each share of preferred stock will be converted into 100 shares of common stock.<\/p>\n
The company has commitments for up to $790 million in new loans and will raise $150 million in equity financing through a rights offering.<\/p>\n
The offering gives common stockholders the right to buy up to 2.56 additional shares of common stock for each share currently owned. The new shares will cost $2.25 each.<\/p>\n
If the rights offering fails to raise $150 million, several major stockholders \u00e2\u20ac\u201c primarily equity investment firms \u00e2\u20ac\u201c have agreed to buy more shares so that the full amount can be raised.<\/p>\n
The disclosure statement estimates that slightly more than $13 million will be paid to unsecured creditors. The total doesn\u00e2\u20ac\u2122t include five disputed claims totaling $3.74 million.<\/p>\n
Foamex has been operating under Chapter 11 protection since September 2012.<\/p>\n","protected":false},"excerpt":{"rendered":"
Company could emerge from Chapter 11 early next year LINWOOD, Pa. \u00e2\u20ac\u201d A U.S. Bankruptcy Court in Delaware has<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2766","post","type-post","status-publish","format-standard","hentry","category-furniture-world-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/2766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=2766"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/2766\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=2766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=2766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=2766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}