Foamex In Sale Agreement with MatlinPatterson

NEW YORK (Reuters) – Foamex International Inc (FMXLQ.PK) , a bankrupt maker of polyurethane foam for bedding and cushions, said on Wednesday that it has reached a deal to sell substantially all of its assets to an affiliate of debt investment firm MatlinPatterson.

MatlinPatterson intends to purchase the company’s assets as a going concern, subject to approval of the bankruptcy court and the results of a bankruptcy auction in May, Foamex said.

MatlinPatterson and Bank of America have served as debtor-in-posession lenders to Foamex, providing up to $95 million to keep the company operating in bankruptcy.

Foamex filed for bankruptcy protection in February. It was the second bankruptcy filing for the company in four years.

The company makes foam products used in bedding, furniture, carpet cushions and autos.

The case is In re: Foamex International Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-10560. (Reporting by Emily Chasan; editing by Carol Bishopric)