Court lets CMI out of Chapter 11
July 10, 2001-- Home Textiles Today,
Columbia, SC — The involuntary Chapter 11 petition filed by CMI's creditors has been dismissed by United States District Court.
The three creditors who had originally filed the petition with the U.S. District Court, District of Delaware, requested the dismissal along with CMI last month.
"The company extends its appreciation to all of its customers, vendors and associates for their support during these last few weeks," said Joseph Gorga, president. "Their support was a significant factor in our ability to resolve this matter in the best interests for all parties."
Gorga went on to say that CMI and its bondholders were engaged in "extensive discussions" to restructure the company's capital structure.
Under the dismissal order, CMI will make its April interest payment owed with respect to its Senior Subordinated Notes while all parties involved will conduct talks in an effort to negotiate a restructuring of the Notes.
The involuntary Chapter 11 petition was filed on May 3 by Chancellor/Triton, Mt. Washington, and Atlantic Global, which held 9.5 percent of CMI's Senior Subordinated Notes. Chancellor/Triton and Mt. Washington were each owed $2.6 million while Atlantic Global was owed $6.3 million.
CMI had been a major fabrics supplier for home furnishings, woven apparel and industrial products manufacturers. Its products had been made into comforters, bedspreads and sheets as well as various soft window coverings. However, the last year has seen the company's exit from the greige goods business with the closing of its Clinton, SC, plant and the sale of its Clarkesville, GA, plant to a management group.