WL Ross & Co. has completed the purchase of Burlington Industries previously approved by U.S. Bankruptcy Judge Newsome, and the simultaneous sale of Lees Carpets to Mohawk Industries, Inc. CIT Business Credit, Inc. has provided the new company with an $85 million asset based line of credit to provide Burlington with the letters of credit and working capital it needs.
Wilbur L. Ross, Chairman of both WL Ross & Co. LLC, and now of Burlington, said, “Burlington's debt burden has been reduced from $800 million at the time it filed bankruptcy to $85 million. Therefore the Burlington employees who have remained loyal during the bankruptcy to the new company no longer have to worry about the solvency of their employer. Under the new CEO, Joe Gorga, Burlington will combine its strong financial base with the 85th best known brand in the world, technology, and efficient operations to become a consolidator of the industry. The only other ingredient we need is a sensible future trade policy on the part of the Bush Administration and we have every expectation that this will be forthcoming.”
