Foamex creditor objects to disclosure statement's claim treatment

By Caroline Salls

Pittsburgh, Jan. 17 - Foamex International Inc. creditor Commercial Roofing Systems, Inc. objected to the disclosure statement for the company's plan of reorganization because its claim was not included, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Since Foamex has not included Commercial Roofing's claim on its schedule, the creditor said the disclosure statement does not provide adequate information on how the claim will be treated.

According to the objection, assuming that Commercial Roofing's claim is being classified as an "other secured claim," the disclosure statement does not include enough information because it proposes three possible treatments for other secured claims.

"Given the nature of Commercial Leasing's claim, a mechanic's lien that is subject to immediate foreclosure if the amounts are not paid, Commercial Roofing would object to any treatment of its claim other than full payment," Commercial Roofing said in the objection.

A hearing on approval of the disclosure statement is scheduled for Jan. 26.

Foamex, a Linwood, Pa., manufacturer and distributor of flexible polyurethane and advanced polymer foam products, filed for Chapter 11 on Sept. 19. Its case number is 05-12685.

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