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Glenoit gets go ahead for selloff

Glenoit Corp. has been given the go ahead to sell its specialty fabrics division to Shanghai Haixin Group of China.

The sale, which was approved by the United States Bankruptcy Court, District of Delaware, was for $14 million and comes as part of the privately held company's reorganization plan under Chapter 11.

The division develops fabrics for casualwear and outdoorwear.

Glenoit filed for pre-packaged bankruptcy protection in August 2000 after a wave of low-cost Asian imports swamped the U.S. market, forcing the manufacturer to reorganize its business, which was primarily knit apparel fabrics, such as fleece used in winter clothing. Following the Southeast Asian financial crises, Glenoit beat a hasty retreat and shut down production. But sales from its American Pacific Home and Ex-Cell Home Fashions divisions boosted business significantly in the fiscal quarter ended April 1, 2000. Despite that, Glenoit was forced to file after 17 percent of its bondholders refused to sign on a deal that would have paid them 17 cents on the dollar.

At the time of its filing, Glenoit had carried a $95 million debt in corporate bonds.

Glenoit sold off its American Pacific arm in 2001. The company still owns Ex-Cell Home Fashions.

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