Foamex shareholder Morgan Stanley agrees to sell voided shares to benefit charity

By Caroline Salls

Pittsburgh, May 12 - Foamex International Inc. and shareholder Morgan Stanley & Co. Inc. requested court approval of an agreement that voids Morgan Stanley stock purchases in excess of 1.27 million shares under the company's stock trading restrictions, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Morgan Stanley owns 1.4 million shares of Foamex common stock.

According to stock trading procedures, anything above 1.27 million shares constitutes an excess share.

Under the agreement, the proceeds from Morgan Stanley's sale of the excess voided shares will be held in a trust for the benefit of a charitable organization to be selected by Foamex.

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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