NEW YORK (Reuters) – Foamex International Inc., a maker of polyurethane foam for bedding and cushions, said on Wednesday a bankruptcy court approved a bankruptcy loan of as much as $95 million to help the company fund operations while it restructures its debt and business.
MatlinPatterson Global Opportunities Partners III L.P. and Bank of America (BAC.N) provided the debtor-in-possession financing, the company said in a statement.
“The final approval we received from the court for the full $95 million in DIP financing is a key step forward as we restructure our debt and position Foamex for a stable future,” said Jack Johnson, president and chief executive, in a statement.
Companies rely on DIP financing to fund payroll, pay suppliers and other operation expenses while they restructure.
The Media, Pennsylvania, company filed for Chapter 11 bankruptcy protection in February. It was the second bankruptcy filing for the company in four years. Foamex employs about 2,300 people worldwide and has about 31 manufacturing facilities in the United States, Canada, Mexico and China.
The case is In re: Foamex International Inc, U.S. Bankruptcy Court, District of Delaware No.09-10560. (Reporting by Chelsea Emery; Editing by Derek Caney)