Ross May Not Bid On Burlington

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Ross May Not Bid On Burlington
Greensboro, NC, Apr. 9--Wilbur Ross, who many thought would be the lead bidder for Burlington Industries after Berkshire Hathaway dropped out, said he would step aside if another buyer put forth a good price for the bankrupt carpet and apparel maker. Burlington Industries still plans to emerge from bankruptcy this summer and deadlines to acquire the company have been set for July 10. Burlington now has until June 31 for creditors and lenders to approve its reorganization plan. A Delaware bankruptcy court has also approved Burlington's motion for modified bidding procedures. The company has hired Miller Buckfire Lewis & Co. to oversee the bid solicitation and auction process. Burlington filed for Chapter 11 bankruptcy protection in 2001. The auction for qualified bidders is now set for July 21, Burlington spokesman Delores Sides said. But Ross, whose buyout firm W.L. Ross & Co. is Burlington's largest unsecured creditor, said that he might not be one of the buyers. "We would be very happy if someone came in and achieved appropriate value and didn't require any assistance from us," said Ross, who is also chairman of Burlington's unsecured creditors committee. "We’re happy to go either way." In February, Berkshire Hathaway dropped its $579 million offer for Burlington after a bankruptcy court balked at the breakup fee required by the firm. That left Ross and his buyout firm, W.L. Ross & Co., as the most likely candidates to buy Burlington. Ross had proposed financing for a stand alone plan of reorganization. The Ross plan would have paid Burlington's $439 million in secured debt and $28 million in administrative claims but called for the issuance of $250 million in new debt. Ross now says he would be available to bid for whatever parts don't appeal to others. Even if Buffett came back with a good offer, Ross would not oppose such a deal. "It's a question of price," Ross said. "We’re certainly not going to let Burlington go at a low price, but if someone is willing to pay a fair price, we'd be happy to step aside if they don't need our help. "We have ongoing interest in [Burlington] but our main interest is in the maximization of value."


Related Topics:Shaw Industries Group, Inc.