American Fibers Files Chapter 11, To Close

Bainbridge, GA, Sept. 24, 2008--American Fibers and Yarns filed for Chapter 11 bankruptcy protection on Tuesday and will close its plant in the next three weeks.

According to the Raleigh News & Observer, the filing states American Fibers owes $10 million to $50 million to dozens of suppliers and utility companies. Among them are Dow Chemical, Sonoco Products and Georgia Power.

"The decision to close these facilities and our inability to provide more advance notice was the result of a number of unexpected events, including the recent loss of customer orders, pricing pressure by our foreign competitors, and unprecedented cost increases," a company statement said.

"In addition, providing earlier notice would have prevented the Company from obtaining the sought after capital necessary to continue its operations. Unfortunately, the Company was unable to obtain this needed capital."

In 1993, Amoco Fabrics and Fibers Corporation, a subsidiary of Amoco Oil Corporation purchased the fibers company.  The combined companies became the largest U.S. supplier of solution dyed filament yarns, staple fiber, needle punch non-wovens, and carpet backing.

American Fibers and Yarns Company was spun off from Amoco Fabrics and Fibers in 1999 and sold to a private equity firm, Monitor-Clipper Partners, of Cambridge, Mass.  The company is headquartered in Chapel Hill, N.C.