Anvil Holdings, the parent company to Anvil Knitwear, has completed a financial restructuring of its capital structure that effectively eliminates approximately $200 million in debt and preferred stock in exchange for new equity and warrants. The company expects to close on all transactions necessary to consummate this restructuring by February 5, 2007.

Anvil had filed for Chapter 11 bankruptcy protection in October 2006 listing assets of $110.7 million and liabilities of $244.6 million. On December 5, the Bankruptcy Court approved the company’s Plan of Reorganization providing that holders of Anvil Knitwear, Inc.’s 10.875% senior notes due 2007 would receive 99% of the equity of the reorganized company and holders of Anvil Holdings, Inc.’s preferred stock would receive the remaining equity, and warrants.

Revenues for fiscal 2006, which ran through January 2006, were roughly $179.9 million. For the fiscal 2007 nine-month YTD period through October, Anvil saw revenues increase 3.2% to $144.4 million from $139.9 million in the prior-year YTD period. Gross margins had fallen to 16.0% from 18.0% the year before. Anvil posted an operating profit of about $1.1 million for the YTD period, but interest on borrowings and dividends and accretion on mandatorily redeemable preferred stock resulted in a net loss of $17.3 million for the period.