Malden Mills Industries, Inc. announced that the company, the agent for its senior lending group, and its unsecured creditors committee have agreed in principle to terms for a consensual plan of reorganization. U.S. Bankruptcy Judge Joel B. Rosenthal, at a hearing on January 28, 2003 in Worcester, MA, gave the company until February 18, 2003 to file a proposed plan of reorganization consistent with this agreement in principle. Under this agreement, both the agent for the senior lenders and the unsecured creditors committee have agreed to “vigorously recommend” approval of this plan of reorganization to their respective creditor constituencies. This plan should allow Malden Mills to successfully emerge from Chapter 11 during the second quarter of 2003.
The plan of reorganization will include an exclusive option in favor of Malden Mills CEO and President Aaron Feuerstein to purchase the interest of the secured lenders and unsecured creditors to retain ownership of the company. This option, if exercised by Aaron Feuerstein, will make possible continued local control of the company and the continuation of Malden Mills 97-year commitment to the employees and communities of Lawrence and Methuen, MA.
CEO and President Aaron Feuerstein stated, “I am thankful to our lenders, in particular GE Capital, as well as our unsecured creditors, for working with us towards a plan of reorganization designed to insure Malden Mills future success. This past year has been one of the most challenging in our company’s history. I have often said that our employees are Malden Mills greatest asset and the way that we have overcome adversity to continue to innovate and manufacture high quality Polartec(R) products has again proven our people to be world class. I am looking forward to successfully emerging from Chapter 11 and expect our best days to lie ahead.”
