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ETF News

UPDATE 1-Foamex gets court OK for sale to MatlinPatterson

* MaitlinPatterson/Black Diamond win with $155 mln bid

* Foamex to continue as going concern

NEW YORK, May 27 (Reuters) - Bankrupt Foamex International Inc FMXLQ.PK said on Wednesday a federal bankruptcy court approved its sale to debt investment firm MatlinPatterson Global Opportunities Partners and private equity firm Black Diamond Capital Management, paving the way for its emergence from bankrupcty as soon as next month.

The winning bid by MaitlinPatterson and Black Diamond came to $155 million, along with the assumption of some liabilities, a Foamex spokeswoman said.

The Pennsylvania-based maker of polyurethane foam products used in bedding, furniture and autos, said it will continue as a going concern and expects to get out of bankruptcy in June.

Foamex Chief Executive Jack Johnson said in a statement the deal would provide the company “continuity of management.”

Foamex filed for bankruptcy in February, the second time it had done so in four years.

Last week, U.S. Bankruptcy Judge Kevin Carey of Delaware ordered the auction reopened to allow secured creditors to continue bidding their secured claims after Foamex had deemed an all cash bid by Wayzata Investment Partners to be the best offer, according to court documents.

MaitlinPatterson and Bank of America Corp BAC.N have provided Foamex with "debtor-in-possession" funding up to $95 million to keep the company operating while in bankruptcy.

The case is In re: Foamex International Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-10560. (Reporting by Phil Wahba; Editing by Andre Grenon)

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