Feuerstein may remain in control of Malden

By Staff -- Home Textiles Today, 1/30/2003 3:12:00 PM

Worcester, MA — Aaron Feuerstein has apparently raised most of the cash he needs to remain in control of the nearly century-old Malden Mills when it exits bankruptcy.

Malden bankruptcy spokesman David Costello confirmed the development to HTT. Terms of a proposed reorganization plan that could see the company exit Chapter 11 by the second quarter called for Feuerstein to step aside unless he was able to buy out the interest of the secured lenders and unsecured creditors. Malden, one of the last vestiges of a once-thriving New England textiles industry, has been controlled by Feuerstein's family for nearly a century.

The firm and its creditors had been publicly squabbling over the terms of a potential reorganization, and a U.S. bankruptcy court judge here had given the company until Feb. 18 to deliver a final plan that creditors could support. Creditors now say they "vigorously recommend" the current proposal.

The Lawrence, MA-based company produces Polartec and is the nation's largest producer of manmade fleece.