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Pillowtex secures DIP financing

DALLAS -Pillowtex Corp., operating under Chapter 11 since mid-November, has received final approval from a U.S. Bankruptcy Court for $150 million in debtor-in-possession (DIP) financing that will allow the company to pay its bills and its workers.

The financing is provided by a consortium of bank lenders organized by Bank of America, one of the major mill's principal financial backers.

Anthony Williams, president and coo, commented, "The DIP financing facility will be a significant source of liquidity for Pillowtex. It will contribute to our ability to operate in the normal course of business during the Chapter 11 case and should provide a measure of assurance to our employees, customers and vendors. We are grateful for the dedication of our employees and the continued support of our lending group, customers and vendors."

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