COURT GIVES JPS OK ON CHAPTER 11 PLAN
NEW YORK — The prepackaged reorganization plan of JPS Textile Group Inc. has been approved by Manhattan Bankruptcy Court.
The reorganization plan changes all debt in the company into equity.
The Chapter 11 proceedings, filed Aug. 1, took place only at the holding company level and did not affect its three businesses — apparel fabrics, industrial fabrics and home fashion textiles.
As a result, trade claims are unimpaired and not affected under the plan.
The company, which is a former operating unit of J.P. Stevens that underwent a leveraged buyout in 1988, is expecting the plan to become effective before the end of this month.
Jerry Hunter, who is JPS’s chairman and president as well as its chief executive officer, stated that the Chapter 11 filing “has been able to create a new capital structure that will support our long-term growth and profitability.”