NEW YORK — Malden Mills Industries Inc. expects to emerge from Chapter 11 proceedings by Aug. 26, following a Friday ruling by a Massachusetts bankruptcy court.

The court has set Aug. 14 as the date for confirmation of the Lawrence, Mass.-based fleece mill’s reorganization plan, said business manager David Costello.

The deadline for chairman, president and chief executive officer Aaron Feuerstein to assemble the funding to buy back the company from its creditors also has been extended to Aug. 26, he said.

If Feuerstein does not succeed in raising the $92 million needed for the buyback, majority ownership would pass to the mill’s creditors, led by GE Capital Corp.

If he does not buy the company back, he will surrender the ceo title upon emergence, but remain chairman and president, Costello said. He added that the company is still searching for an executive to fill the ceo slot if one is needed.

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