Pillowtex moves toward reorg
By Staff -- Home Textiles Today, 12/5/2005 12:15:00 PM
WILMINGTON, Del. -- Nearly two-and-a-half years after it filed for bankruptcy protection, a preliminary disclosure statement and reorganization plan have been filed for Pillowtex Inc.
It’s apparently still a work in progress, however, since several potentially multi-million dollar lawsuits --, including class action and union-led WARN Act suits affecting some 7,500 workers -- are still pending. While the plan has been filed with the federal bankruptcy court here, no date has been set to file objections or set a vote on confirmation.
“We have not yet scheduled a disclosure hearing, we’re still working on finalizing some of the issues of the plan,” said creditors’ committee attorney Mark Indelicato. “Our hope is to get it filed sometime within the next couple of weeks.” The creditors’ committee is a proponent of the plan.
The plan proposes to pay priority tax, administrative, and first- and second-tier secured lenders up to100 percent. A third class of “convenience claims” that includes unsecured creditors who agree to lower their outstanding claims to less than $10,000 would receive a 12 percent payout. A fourth class of general unsecured creditors would receive a pro rated share of the remaining distribution -- an amount not yet set because of the pending litigation, among other reasons. Equity holders would receive no payouts under the proposal.
We would love your feedback!
Most Recent Resources
- Getting the most out of offline leads
- Free Shipping and the Importance of Onsite Promotion
- Should Branded Manufacturers Participate in Flash Sales?
- Rugs 101 - Special Edition
- How Big Is Your Label
- Choosing a Web Site Developer
- Convergence: Tie Your Online & Offline Experience...
- Social Networks to Social Shopping
- Why Brands and Their Retailers are Facebook’s Biggest...
- Web Based Intelligence Gathering
- The Future of Tablets
- Shopatron: Bicycles & eCommerce
- A Guide to Holiday eCommerce Success
- Mattress Buying 101 - Connecting with Consumers
- Designing Your Brand’s Website for eCommerce
- Global Sourcing in 2010: Doing More With Less
- Comparing Four Options for Turning Web Site Traffic into...
- Are You Prepared for the 2009 Holiday Season? A Branded...
- Design, Develop, Deliver: The Three D's to Digitally...