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Quaker Gains Finishing Plant, Financing

Woven upholstery and jacquard supplier Quaker Fabric is ready to open a new joint-venture finishing plant in China, and has arranged a vital refinancing plan.

Hangzhou Zhongwang Fabric Products Company and Quaker said the finishing and post-finishing plant in Hangzhou will start operating in November. Based on technical support from Quaker, the vertically-integrated upholstery fabric mill will employ proprietary technology exclusively to finish Quaker products.

"Fabric finishing has long been a source of competitive advantage for Quaker," said Quaker president and ceo Larry Liebenow. He said customers will obtain consistent, optimum quality "whether the product they've ordered from Quaker is manufactured in Massachusetts or China."

Quaker said it reached initial agreement on terms of a refinancing transaction for approximately $50 million of senior secured financing. The current senior secured credit facility with Bank of America will be amended to provide a $25 million revolving credit facility, and fulfill current term loan obligations. The agreement also provides two senior secured term loans of up to $12.5 million each from GB Merchant Partners, an affiliate of liquidator firm Gordon Brothers.

Both the Bank of America and GB Merchant Partners transactions are planned to run through May 17, 2010.

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