Meriturn to acquire Johnston Inds.
October 20, 2003-- Home Textiles Today,
Johnston Inds. has signed a letter of intent from Meriturn Partners for the purchase of a substantial portion of its assets under Section 363 sale procedure, pursuant to the U.S. Bankruptcy Code on a going concern basis.
Johnston, a designer, manufacturer and supplier of decorative fabrics and finished technical textiles as well as reclaimed fibers, on Jan.31 filed voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court for the Middle District of Georgia.
Its textiles units include Southern Phenix Textiles, an integrated textile mill producing jacquard fabrics and spun polyester napery; Micholas Mills, a weaving mill; and Shawmut Finishing Complex and Distribution, a dyeing and finishing facility, said Marvin Davis, chief restructuring officer.
"This offer would provide Johnston the ability to emerge from this process with a strong balance sheet and the financial resources to remain a leader in the technical textiles and decorative fabrics business," said Gene Cone, president and ceo.
In coming weeks, he added, "Meriturn and other potential buyers will complete their due diligence to acquire Johnston." The company also is seeking bids for the fiber products division of its business, which is being sold in a separate sale process.
Meriturn Partners is located in San Francisco and Raleigh-Durham, NC, and is an advisor and investor for middle-market restructurings and turnarounds.