Articles tagged with: Foamex International Bankruptcy

Foamex International Bankruptcy – Another Automotive Supplier Files

See the Foamex International Docsheet™ Report for subsequent developments in the Foamex International bankruptcy proceedings.

Feb. 23, 2009 – Foamex International, Inc., together with 7 affiliates, filed for Chapter 11 protection in Delaware on February 18, 2009.  The affiliates are:  Foamex, L.P.; Foamex Latin America, Inc.; Foamex Asia, Inc.; FMXI, LLC; Foamex Carpet Cushion LLC; Foamex Mexico, Inc.; and Foamex Canada Inc..

We have made the following preliminary observations:

  1. There is a high risk of bankruptcy preference claims in this bankruptcy;
  2. This is yet another automotive supplier casualty, although the press has not noted it as such;
  3. A very high amount, in both dollars and percentage, is being sought for payment of prepetition amounts to “critical cendors”;
  4. A realistic but expansive definition of “critical vendors” is being used;
  5. Inclusion on the critical vendor list is not immunity from a bankruptcy preference claim.

We discuss each of these observations in more detail below.