Foamex sale order appealed by creditor Wayzata, bidder Foam Holdings

By Caroline Salls

Pittsburgh, June 8 - Foamex International, Inc.'s asset sale approval was appealed Monday by creditor Wayzata Opportunities Fund II, LP, bidder Foam Holdings, LLC and Foam Holdings' manager Wayzata Investment Partners LLC, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court approved the sale of substantially all of Foamex's assets on May 27 to affiliates of first-lien term loan lenders MatlinPatterson Global Opportunities Partners III LP and Black Diamond Capital Management, LLC.

MatlinPatterson and BlackDiamond instructed term loan administrative agent Bank of New York Mellon to submit a $155 million credit bid for the assets at auction, and they offered a cash-out option for non-credit bidding lenders under the first-lien term loan with an implied value of $146.5 million.

According to the final asset purchase agreement, the lenders also agreed to assume $26.6 million in liabilities.

Foamex, a Media, Pa.-based producer of polyurethane foam-based and specialty comfort products, filed for bankruptcy on Feb. 18. Its Chapter 11 case number is 09-10560.

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