Burlington: No Assurance Lees Will Be Sold To Ross

Greensboro, NC, July 21--Burlington Industries Inc. said in a statement issued Monday afternoon that it has received several proposals in connection with the sale process approved in bankruptcy court last May, but has not accepted any of them at this time according to the Triad Business-Journal. Burlington said it is assessing the proposals and did not expect to have any additional comment unless it enters into a sale agreement or determines to terminate the process. "There can be no assurance that Burlington will agree to any particular transaction or, if so, as to the timing or terms thereof," Burlington said. Earlier in the day, Mohawk Industries Inc. said that it has entered an agreement with W. L. Ross & Co. to acquire the assets and assume certain liabilities of Lees Carpet, the carpet division of Burlington Industries Inc. Ross has entered a binding bid to Burlington to purchase certain assets and assume certain liabilities of Burlington in connection with its emergence from bankruptcy. The bid includes a provision for Lees Carpet to be sold to Mohawk by Ross if it is successful in the auction process. The auction is scheduled to be held on July 28 and a bankruptcy court hearing to approve the auction is scheduled on July 31. Should Ross be successful, the closing of Mohawk's purchase of Lees Carpet would be subject to customary regulatory approval and confirmation of Burlington's plan of reorganization by the bankruptcy court, Mohawk said in a statement. Mohawk is a supplier of flooring for both residential and commercial applications and a producer of woven and tufted broadloom carpet, rugs and ceramic tile. Burlington filed for Chapter 11 bankruptcy protection in 2001.