The worlds most famous long-term investors Berkshire Hathaway company said that it will pay $579 million in cash to the creditors of Burlington Industries Inc., the textile manufacturer that filed for Chapter 11 bankruptcy protection in 2001.
Both companies expect the deal to close by the end of June, assuming approval by the Bankruptcy Court and government agencies. Burlington then would become a debt-free, wholly owned subsidiary of BRK.
Under the deal, BRLGs secured creditors would be paid in full and unsecured creditors would receive an estimated 34% to 35% of their claims.
