Dan River on Comeback Trail
November 8, 2004,
Paving the way for an exit from bankruptcy as early as January — less than 10 months after retreating into Chapter 11 — Dan River Inc. said it has lined up exit financing from a consortium of lenders, and has scheduled a confirmation hearing in U.S. Bankruptcy Court on Jan. 4.
“This is a significant milestone on the road to our emergence from Chapter 11 early next year,” said Joseph Lanier Jr., chairman and CEO.
In a further cash infusion, Dan River said the bankruptcy court green-lighted the company to use cash collateral to fund its current and ongoing operations. Additionally, the court approved, on an interim basis, an additional new $10 million senior secured credit facility to be provided by some of Dan River's existing bondholders.
The new $10 million facility is in addition to the existing $110 million debtor-in-possession (DIP) revolving credit facility, and a $35 million DIP term loan already in place.
Dan River said it lined up the additional financing from current bondholders when it was unable to cut a deal with existing DIP lenders about non-financial debt covenants.
The company said the use of the cash collateral and the new $10 million credit facility “are expected to provide adequate funding for the company's operations through the conclusion of the Chapter 11 process.”
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.