WILMINGTON, Del.–The U.S. Bankruptcy Court here has approved the sale of Foamex to two private equity companies.
MatlinPatterson Global Opportunities Partners and Black Diamond Capital Management will emerge as the new owners of Foamex when the sale is closed. According to a Foamex statement, the closing and the foam manufacturer’s emergence from Chapter 11 are expected to take place in June.
In the statement, Jack Johnson, president and chief executive officer of Foamex, said the sale will result in a stronger balance sheet for the company and will provide additional resources for Foamex. In addition, Foamex will be able to take advantage of the two private equity companies’ expertise in terms of acquisitions and alternative financial investment strategies.