Glenoit reorganization plan approved

Staff -- Home Textiles Today, 9/30/2002 12:00:00 AM

WILMINGTON, DE —

The U.S. Bankruptcy Court here has given its approval to a plan of reorganization for Glenoit Corp., paving the way for the company to emerge from Chapter 11.

Glenoit's lenders lined up to support the plan, with 90 percent of the company's unsecured creditors, representing 99.9 percent of the unsecured debt, green-lighting the deal.

Additionally, 93 percent of the bondholders, holding 99.9 percent of the bond debt, approved the plan of reorganization.

Barry Leonard, Glenoit ceo, told Home Textiles Today the company is on track to exit Chapter 11 on Oct. 10, "just in time for market. We told our creditors we wanted to be out in time for market, and they were happy to work with us. And we couldn't be more grateful or more delighted."

The confirmation order was signed by Judge Ronald Barliant and enables Glenoit to emerge from bankruptcy after more than two years in Chapter 11.