By Liz White, UT staffLinwood, Pennsylvania-Foamex International Inc. has been given the go-ahead by a US Bankruptcy Court for measures that it says will allow the company to operate smoothly, without interruption, throughout its Chapter 11 reorganisation. The Court approval lets Foamex continue to pay employees; use its existing cash management systems; and continue its customer programmes uninterrupted. The company is also allowed to pay vendors for certain critical goods and services provided before the Chapter 11 case, said a 21 Sept statement from the group. The court measure also allows the US foam producer access to up to $221 million of the $240 million debtor-in-possession finance arranged by Bank of Americe. In addition Foamex is permitted to obtain a new $80 million DIP term loan from Silver Point Finance llc. “The court’s approval … will ensure that Foamex can conduct business as usual and remain focused on serving our customers as we go through this restructuring process,” said Tom Chorman, Foamex’s president and ceo, in the Foamex statement. Linwood-headquartered Foamex says it is the world’s leading producer of comfort cushioning for bedding, furniture, carpet cushion and the automotive market. It also makes high-performance polymers for diverse applications in industry, aerospace, defense, electronics and the computer sector. “
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