Pakistani mills seek goods worth $4.9 million from Dan River
By Staff -- Home Textiles Today, 5/8/2008 1:26:00 PM
Wilmington, Del. – A group of nine Pakistani mills are seeking to reclaim about $4.9 million in goods they shipped to Dan River, which declared bankruptcy last month.
In documents filed Tuesday, May 6 with the U.S. Bankruptcy Court for the District of Delaware naming Dan River Holdings LLC and related parties as defendants, the mills said they seek reclamation of property, adequate protection, injunctive relief and an accounting for both distributed and unsold goods.
Claiming that Dan River was “insolvent at the time they received the goods,” the following suppliers list claims in the amounts shown:
Afroze Textiles: $304,144
Bari Mills: $108,728
Dalal Industries Private Ltd.: $469,539
International Textile Ltd.: $475,604
KAM International: $711,573
Liberty Mills Ltd.: $722,104
Sajid Textile Industries: $427,764
Towellers, Ltd.: $487,148
Yunus Textile Mills Ltd.: $1,186,998
The mills are owed more than the amounts listed, but the reclamation demand covers only those goods received by Dan River within the 45 days prior to the April 20 Chapter 11 filing, or March 6.
In its April filing, Dan River, which is owned by Indian conglomerate GHCL, listed more than $18 million owed to its 30 largest unsecured creditors.
The injunction sought by the Pakistani mills would bar Dan River from selling, transferring or otherwise using the goods, which range from bed-in-a-bag sets to towels and bath mats. The plaintiffs also seek attorneys’ fees and related costs.
