Cone seeks recap for Mexico expansion; some opposed
January 17, 2003-- Home Textiles Today,
Greensboro, NC — Cone Mills Corp. has cut a deal with WLR Recovery Fund II L.P., a private investment fund, to sell WLR up to $27 million in convertible notes, a move that will support a recapitalization of the company's balance sheet and allow the expansion of its Mexican denim operations. WLR now holds 50 percent of Cone's bank debt and a portion of its bonds. Shortly after the announcement, a shareholders’ group that owns about 11 percent of the company’s stock issued a statement opposing the proposed rights offering and urging its rejection by shareholders.