WL Ross Cleared To Buy Out Burlington

Charlotte, NC, Oct. 30--A federal bankruptcy judge approved a $614 million buyout of textile maker Burlington Industries by WL Ross & Co. LLC. U.S. Bankruptcy Court Judge Randall Newsome in Delaware approved the buyout Thursday after a brief hearing, said financier Wilbur Ross, who specializes in turning around ailing companies. Ross said he expects Greensboro-based Burlington to emerge from bankruptcy protection on Nov. 10 when he closes the deal. "The reason for this timing is that technically anyone who wants to file an appeal will have 10 days to do so," Ross said in a telephone interview. But he said he doubts there will be an appeal to the buyout since there were no objecting parties during Thursday's hearing. Ross has said he wants to sell off Burlington's profitable Lees carpet division to Mohawk Industries and wants to keep the rest of the business intact. Burlington was once the world's largest textile company with 80,000 employees and 149 plants. Since declaring bankruptcy in November 2001, Burlington has cut its work force from 13,500 to about 7,000. Last week, Ross named himself chairman and industry veteran Joseph Gorga president and chief executive officer of the new Burlington Industries. Gorga, 51, joined Burlington in 2002 as executive vice president of North American operations. Before that, he had been general manager for the automotive and elastic fabrics businesses for textile-maker Milliken and Co. and CEO of CMI Industries Inc. Ross said Burlington's current senior managers - including chairman and CEO George Henderson III and John Englar, senior vice president of corporate development and law - will leave the company. "Today's approval is the final step leading to the company's emergence from Chapter 11 and a fresh start for the company as a globally competitive industry leader," Henderson said.