Joint Plan of Reorganization Filed in In re Latex Foam International, LLC, et al.

In the Chapter 11 case of In re Latex Foam International, LLC (Connecticut), an East Coast foam mattress manufacturing company, S&W represents the official committee of unsecured creditors.  On December 3, 2014 the Committee and the Debtors filed a joint plan of reorganization to allow the company to restructure its debt and continue to operate while securing the unsecured creditors’ rights to a partial payment of their claims.  If confirmed, the plan would give unsecured creditors shares of convertible preferred stock in the company.  The stock will have a liquidation preference equal to 50% percent of the unsecured claims if paid within 3 years, and would increase to 60% percent if paid after three years.  Prior to the unsecured creditors being paid, the current owners of the company would be prohibited from receiving any dividends or distributions, effectively securing the unsecured creditors’ rights to payment.