Pillowtex wins still more time

By Staff -- Home Textiles Today, 7/18/2003 12:00:00 AM

Kannapolis, NC — Pillowtex has won yet another time extension — its fourth — in its ongoing bid to remain viable until it can find cash or an acquisition to bring it into compliance with defaulted loan convenants.

The nation's third largest textiles manufacturer this afternoon said its lenders have now agreed to extend a forbearance agreement set to expire Monday, July 21, until Friday, July 25. During that time the company's lenders have said they will not exercise their rights and remedies under Pillowtex's term loan agreement. An interest and principal payment was due June 28, 2003 that the company failed to make.

Since that time, Pillowtex has been reviewing its "strategic alternatives" including the possibility of a buyout saving the company from bankruptcy or liquidation.