Foamex, Talking With Lenders, Says Operations OK

MEDIA, PA-Foamex, the locally based manufacturer of polyurethane foam-based comfort products, is in negotiations with lenders over its term loans. According to a company press release, it has not made a $7.3 million interest payment that was due Jan. 21 “in order to continue the process for a restructuring of its balance sheet and in consideration of its best long-term interest.”

Foamex, which emerged from bankruptcy in February 2007, has reduced its debt by $270 million over two years and is working “constructively” with Bank of America, the agent of its revolving credit facility, points out chairman and CEO Jack Johnson. “Importantly, these steps and our ongoing negotiations should have no effect on Foamex’s day-to-day operations,” he says in a press release.

Foamex has about 25 facilities in North America and China, according to its website. It is currently looking to sell its plant in Eddystone, PA, management said in its Q3 report.