Dan River unveils plan
August 9, 2004,
Textiles producer Dan River Inc., working its way through Chapter 11, has filed a plan of reorganization in U.S. Bankruptcy Court that calls for paying unsecured creditors — mostly raw material and merchandise suppliers — in newly minted stock once the company exits bankruptcy.
New common stock would be issued once the company exits bankruptcy, and given to unsecured creditors with claims exceeding $2,500 on a pro rata basis, making them the company's owners. Unsecured claims less than $2,500 would be paid in cash.