Dan River Turns the Page on Chapter 11
February 21, 2005-- Home Textiles Today,
Newnan, Ga. — A leaner, streamlined Dan River, with a new top management team, has stepped out of the shadow of bankruptcy in something like record time, little more than 11 months since seeking the shelter of the court on March 31, 2004.
On Feb. 14, a U.S. Bankruptcy Court for the Northern District of Georgia, Newnan Division, put the seal of approval on the plan of reorganization submitted earlier by the company, releasing the company from Chapter 11.
During the painful process, the mill restructured manufacturing, slimmed down its work force, and installed a new top management team, headed by Barry Shea, CEO, who succeeds Joseph Lanier Jr.
Lanier has ceded all operating authority, but remains non-executive chairman of the board.
As part of the plan, about 22.5 million shares of the company's Class A and Class B common stock have been canceled and no longer have value.
The company is now authorized to issue up to 40 million shares of common stock to creditors to settle their claims.
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