Guilford Mills has a plan

Staff -- Home Textiles Today, 7/15/2002 12:00:00 AM

GREENSBORO, NC —

Guilford Mills has presented its plan to emerge from bankruptcy proceedings, which it plans to do by Sept. 30, the end of its fiscal year.

Under the plan, the company's suppliers will be paid in full, and Guilford's senior lenders will own 90 percent of the company. Existing shareholders will own the remaining 10 percent. Debt will be cut significantly, with a three-year revolving credit facility and a three-year term loan totaling $150 million — down from $270 million before entering bankruptcy court.

Because sales and operating profits have been outpacing expectations, the company said, it is not borrowing on its court-approved, $30 million debtor-in-possession financing.