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Glenoit set to emerge from Ch. 11

New York - Almost exactly two years to the date since Glenoit Corp. was forced to file a pre-packaged Chapter 11 bankruptcy plan to wipe the slate clean of $95 million in corporate bonds, the company is now on its way to recovery.

Glenoit Corp. announced today it expects to emerge from Chapter 11 bankruptcy proceedings within the next 60 to 90 days under the ownership of its current lenders and through a reorganization plan that calls for the company to be led by its current management team.

In the next 10 days the company will file its reorganization plan at Bankruptcy Court. Approval is projected for September.

Barry Leonard, president of Glenoit's home fashions division Ex-Cell Home Fashions, told Home Textiles Today the company had "different offers" from prospective buyers during the course of the past two-year period.

But in a company issued press release, Glenoit Corp. stated "it was decided that the best course of action was to bring Glenoit out of bankruptcy through a reorganization plan spearheaded by management and supported by Glenoit's current lenders."

Earlier this year, in an effort to focus on its more profitable product lines, including the bath products, table linens and decorative pillows by Ex-Cell and the accent and scatter rugs by its Glenoit Consumer Products division, the company sold off its specialty fabrics division to Shanghai Haixin Group of Hong Kong for more than $14 million in cash. Prior to that, in late 2001, Glenoit sold its American Pacific home furnishings division back to its original owners for about $28 million in cash and other considerations.

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