Dan River looks to clear final bankruptcy hurdles

By Staff -- Home Textiles Today, 1/13/2005 12:07:00 PM

DANVILLE , Va. — Heading toward the finish line and a speedy exit from Chapter 11, Dan River is due in U.S. Bankruptcy Court Jan. 18, when approval is expected for a plan of reorganization that has already been approved by creditors.

Once the company gets the green light from the judge and clears the remaining few formalities, it should exit bankruptcy about three weeks later, during February.

The company might have emerged somewhat earlier but for minor glitches that held up the previously announced sale of its engineered fabrics division. A bankruptcy court in Newnan , Ga. , cleared the sale on Jan. 12.

If it comes out on schedule, which now appears likely, Dan River will have completed one of the fastest bankruptcy exits recorded in the home fashions business in recent memory, just over nine months after filing on March 31, 2003.