NEW YORK — Executives at Malden Mills Industries Inc. were awaiting word Tuesday night from the U.S. Bankruptcy Court in Worcester, Mass., on when the firm would be emerging from Chapter 11 proceedings.

“It is imminent,” said business manager David Costello.

He expected the company’s creditors, led by GE Capital Corp., to take possession of the company. Malden chairman and chief executive officer Aaron Feuerstein had fought to amass the $92 million in financing needed for him to retain ownership of the company, but was not expected to have the capital together in time.

However, Costello said Feuerstein was in talks with a real estate developer for a deal in which that company would acquire Malden’s assets, continue to operate the firm’s plant and also turn some of the company’s older buildings in Lawrence, Mass., into housing.

Under the terms of Malden’s reorganization plan, which was approved by the court in August, if Feuerstein does not assemble the money to buy the firm he will give up the role of ceo, but remainas chairman. Costello said a new board and ceo would be announced if the company emerges under creditor control.

Malden, the maker of Polartec polyester fleece, sought court protection in November 2001, in the midst of a major wave of textile bankruptcies.

To access this article, click here to subscribe or to log in.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus