Foamex makes $40M payment on debt

Foamex International Inc., Lindwood, today said it will reduce its debt by Dec. 30 to about $531 million by making a payment of $40 million on its first-lien term loan.

A portion of the payment will include about $18 million in net cash proceeds from the sale of its former interest in Foamex Asia Ltd.

Foamex, a manufacturer of flexibile polyurethan and polymer foam products, said in October that it intended to cut its debt to less than $560 million by the end of the year, from $610 million at the end of June.

Shares at midday were up 17 cents, to $2.25 in over-the-counter pink-sheet trading.