Foamex seeks dismissal of bankruptcy case

Foamex International Inc. is seeking dismissal of its bankruptcy case, with the former manufacturer of auto-seat foam saying there was almost nothing left of the company after virtually all of its assets were sold.

The company listed assets of $363.8 million and debt of $379.7 million as of Sept. 28, 2008, in Chapter 11 documents filed Feb. 18 in Wilmington.

The bankruptcy filing was Foamex's second in less than four years, with the company citing the slowing economy. Foamex cited the collapse of auto sales in early 2009.

Foamex "terminated their business operations and liquidated or disposed of all of their assets," lawyers for the company said in court papers filed yesterday in U.S. Bankruptcy Court in Wilmington.

The company's remaining assets are funds held in escrow, which will be used to pay expenses related to winding down the company.

Substantially all of the assets were sold in June to lenders MatlinPatterson Global Advisors L.L.C. and Black Diamond Capital Management L.L.C. for about $155 million of debt owed to them, and the assumption of certain liabilities. Out of that came a new company, FXI Foamex Innovations, which operates more than 20 locations in the United States, Canada, Mexico and China and has about 2,000 employees.

"Our new company, FXI, gets a fresh start with zero debt on the balance sheet," said Jack Johnson, FXI'S chief executive officer, who like other FXI officers was brought over from the Foamex management team.

Now a privately held company, FXI has headquarters in Media.