Burlington Industries, Inc. announced that the purchase price in its July 25th acquisition agreement with W.L. Ross & Co. LLC had been increased from $608 million to $620.08 million, both subject to various adjustments. The increase resulted from the sale process approved by the Court in Burlington's reorganization proceeding.
The terms of the Burlington-Ross agreement are unchanged from the agreement announced on July 25th, except for the increase in the gross purchase price, which is payable at the closing $614.0 million in cash and a $6.08 million credit for enhancement of the break-up fee negotiated as part of the July 25th agreement. The agreement contemplates the sale of Burlington to W.L. Ross & Co. LLC, with a concurrent sale of Burlington's Lees carpet business to Mohawk Industries, Inc.
Burlington estimates that the new purchase price will increase the return to unsecured creditors from approximately 40% to approximately 41.5% per allowed claim amount. This estimated amount is based on various assumptions, and the actual amount could be different.
Burlington will submit the revised agreement to the Bankruptcy Court for approval on Thursday, July 31, 2003.
