Judge Orders Foamex To Restart Auction of Assets

Media, PA, May 22, 2009–Foamex International Inc. was ordered to restart an auction for its assets after the outcome was challenged by lenders owed $325 million.

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Del. said Thursday that bids may top the $141.5 million offered by Wayzata Capital Investment Partners LLC, which won the first auction.

He gave lenders, including MatlinPatterson Global Advisors LLC, permission to offer a so-called credit bid when the auction resumes. That means the lenders, should they win, would trade debt they are owed for equity in a reorganized Foamex.