MEDIA, PA.—Two years after successfully emerging from a Chapter 11 process with a reorganization plan that repaid creditors in full and allowed equity holders to retain their interests in the company, Foamex International has once again sought the protection of the bankruptcy courts.

The company, which manufactures numerous polyurethane foam-based products, including carpet cushion, said in its District of Delaware bankruptcy court filing that normal day-to-day operations will continue without interruption. According to court filings Foamex employs about 2,300 people worldwide and has 31 manufacturing facilities in the U.S., Canada, Mexico and China.

A month ago, Foamex announced it was “engaged in discussions with certain lenders holding more than a majority of its First Lien Term Loans regarding restructuring options.”

Jack Johnson, president and CEO, said, “Although we have reduced debt by about $240 million to $380 million over the past two years, we cannot support the existing heavy debt load in the current operating environment. Like many companies around the world, Foamex has been hit hard by the economic downturn in markets we serve.”

According to the Chapter 11 filing, the company’s total debt is $379.7 million against total assets of $363.8 million. At the top of the list of unsecured creditors are Dow Chemical at $18.1 million, Milliken & Co. at $2.9 million and Bayer Corp. at $1.4 million. And though Foamex needed 18 months to get through the first bankruptcy, Johnson expects this one to last just six months.

In conjunction with its filing, the company is seeking approval of up to $95 million in debtor-in-possession (DIP) financing which “represents a significant incremental cash availability [for Foamex] at the outset of the proceedings, Johnson explained.

“The Chapter 11 process will allow Foamex to gain immediate liquidity and continue operating without interruption,” he added, “while giving us the opportunity we need to restructure our balance sheet, strengthen our business performance and create long-term value.”

In addition to helping it conduct business in a normal way, Johnson said Foamex will continue “to invest in technology, product and market development. We expect to emerge from this process as quickly as possible with a more appropriate capital structure that will allow us to be a healthier, more competitive company.”