NEW YORK--Softouch Co. Inc., the women's bodywear manufacturer reorganizing under Chapter 11, expects to file a plan of reorganization within two weeks and emerge from bankruptcy court with a new financial backer before the end of the summer.
Alan Weiss, chief executive officer, refused to identify the backer but said a draft of the plan of reorganization calls for current management to be retained and for unsecured creditors to receive a one-time cash payout after approval of the plan.
Weiss also refused to quantify the size of the payout, as did Patricia Redmond, of Stearns, Weaver, Miller, Weissler, Alhadeff & Sitterson, Miami, counsel to Softouch.
The Miami-based company, with 1994 sales of $11 million, was forced into court-protected reorganization after several creditors filed an involuntary Chapter 7 petition against the company in April.
At the same time, Sports/Leisure Inc., which owns a 25 percent stake in Softouch, said in a statement that it did not expect to be able to spin off to its shareholders a minority stake in Softouch.
Under Softouch's plan, all existing equity is erased. --Fairchild News Service

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