Quaker Fabric, already liquidating, declares Ch.11

By Staff -- Home Textiles Today, 8/20/2007 12:42:00 PM

Fall River, Mass. -- Having already started its asset liquidation process, upholstery and jacquard producer Quaker Fabric filed for Chapter 11 bankruptcy last Friday.

Quaker's affiliates outside the United States were not included in the Chapter 11 filing.

The company said it has an agreement for up to $1.65 million in new debtor-in-possession (DIP) financing. Upon court approval, this will provide sufficient funding during the Chapter 11 process, it said.

“Substantially all” of Quaker’s 930 employees were terminated as of July 2, and bids on assets have been sought in conjunction with the July 9 retaining of a liquidation advisory firm.

In the filing, Quaker said it has assets at book value of $155.2 million and debt of $60.4 million. Among the industry suppliers listed among the 40 largest unsecured creditors are:

• Unifi, owed $3.2 million
• Hangzhou Zhongwang Fabric, $1.3 million
• Seko Worldwide, $471,658
• Carolina Yarn Processors, $453,739
• American Fibers and Yarns, $350,124
• Regifil, $317,301
• National Spinning Co., $302,354
• Regitex, $274,430
• Noveon, $240,344
• Burke Mills, $195,464
• Huntsman Textile, $181,149
• American Dornier Machine, $139,428
• Crypton, $127,575
• Texturing Services, $112,338
• Tuscarora Yarns, $94,572
• Grover Inds., $90,776
• Chesterfield Yarns, $36,414