Burlington Targets Summer Emergence

Greensboro, NC, Apr. 8--Burlington Industries expects to emerge from bankruptcy this summer and has until July 31 to get its creditors and lenders to sign off on the reorganization plan. Burlington has hired investment banking firm Miller Buckfire Lewis & Co. to oversee the bid solicitation and auction process. The company has been seeking a buyer since Warren Buffett's Berkshire Hathaway Inc. dropped its $579 million cash offer in February. The company, which had sales of about $1 billion last year, entered in bankruptcy in late 2001, struggling under $1.1 billion of debt, as it sought to fight off heavy competition from cheap imports. The bankruptcy court extended the company's period of exclusivity to solicit acceptances of its plan of reorganization through July 31, Burlington said in a statement. The court also approved the company's motion for modified bidding procedures for the solicitation of offers to purchase the textile firm. Under the approved bidding procedures, the deadline for bids to purchase the company will be July 10, with the auction for qualified bidders set for July 21. "We have made significant progress and continue to move forward in our emergence process," said chairman and CEO George Henderson. Burlington has repaid more than $140 million in debt over the past 17 months and will seek court approval to repay another $50 million next month.

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