Burlington Industries, Inc. reports that it is continuing its progress towards emerging from Chapter 11 reorganization this summer. The Court has extended the Company’s period of exclusivity to solicit acceptances of its plan of reorganization through July 31, 2003 and approved the Company’s motion for modified bidding procedures for the solicitation of offers to purchase the Company.
Under the approved bidding procedures, the deadline for bids to purchase the Company will be July 10, 2003 with the auction for qualified bidders to be held on July 21, 2003. The Company has hired Miller Buckfire Lewis & Co., LLC, an investment banking firm, to oversee the bid solicitation and auction process. These amended procedures and retention of an investment banker will assure a more comprehensive sale and auction process. The Company’s secured bank lenders and the Official Committee of the Unsecured Creditors joined the Company in seeking the Court’s approval of the modified procedures.
“We have made significant progress and continue to move forward in our emergence process,” said George W. Henderson, III, Chairman and Chief Executive Officer. “The modified bidding procedures established today strengthen our solicitation process and provide further assurance that the resulting outcome will be the best for the Company and our creditors.
“Over the last 17 months we have aggressively transitioned the Company and implemented a new business model that expands and strengthens our capabilities through more focused North American assets, expanded product and global capabilities of Burlington WorldWide and differentiated fabric performance developed by Nano-Tex. In addition, we have repaid $140 million of debt during this period and will seek court approval to repay another $50 million next month. Through the tremendous efforts of our employees and support from our customers we are achieving our reorganization objectives and are positioned well as we enter the final stages of our emergence.”
