Bankrupcty judge okays Sure Fit sale
By Staff -- Home Textiles Today, 8/6/2004 12:00:00 AM
NEW YORK — Judge Burton R. Lifland approved the sale of Sure Fit's assets to New York-based investment firm DE Shaw and bath-towel producer J.R. United yesterday at a hearing at the U.S. Bankruptcy Court of the Southern District of New York. According to the case's committee of unsecured creditors, the two parties will pay $16.5 million in cash and assume $4 million of Sure Fit's liabilities.
Priority claims in the Sure Fit bankruptcy proceedings include Wachovia Bank, which is owed more than $27 million, and GE Capital, which has an $8 million lien on equipment and other assets.
Final details of the purchase are expected to follow next week when the deal officially closes.
According to company officials, the change of ownership will mean "business as usual" for the slipcover manufacturer, which will be able to keep its management and operations in place, at least for now.
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