Guilford issues new common stock
Home & Textiles Today Staff -- Home Textiles Today, September 27, 2002
Greensboro, NC — With a green light from a U.S. bankruptcy court, Guilford Mills Inc. is now set to emerge from bankruptcy by Oct. 1, canceling all of its old stock and distributing a new issue of common stock to the company's new owners, mostly its former creditors.
On the effective date of the bankruptcy plan, all of Guilford's existing common stock will be cancelled and the new shares will be distributed, 90 percent going to lenders and the remaining 10 percent to existing shareholders.
About 5.5 million shares of the new common stock will replace about 18.6 million shares of existing Guilford stock. The new shares will continue to be traded on the OTC Bulletin Board, under a new ticker symbol, yet to be assigned.