Foamex senior secured noteholders object to 'unwarranted' exclusivity extension request

By Caroline Salls

Pittsburgh, April 4 - Foamex International Inc.'s ad hoc committee of senior secured noteholders objected to the company's request for a 150-day extension of its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, the company had agreed in principle in February with the ad hoc committee, the official committee of unsecured creditors and its largest unsecured creditor Steel Partners II, LP on the economic terms of a consensual plan of reorganization.

However, instead of formulating a plan based on the agreement, the company withdrew from the agreement and chose to delay the case by seeking an "unwarranted" exclusivity extension.

The ad hoc committee said Foamex's board of directors is "attempting to hold its creditors hostage to a prolonged reorganization process while it pursues its own as yet undisclosed agenda."

A hearing on the exclusivity extension is scheduled for April 11.

Foamex, a Linwood, Pa., manufacturer and distributor of flexible polyurethane and advanced polymer foam products, filed for Chapter 11 on Sept. 19, 2005. Its case number is 05-12685.

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