FTL FILES TO REORGANIZE
NEW YORK — Fruit of the Loom filed a plan of reorganization in a Delaware bankruptcy court, the company said late Thursday.
The plan requires the approval of the company’s creditors and the bankruptcy court. Fruit of the Loom said it is in “continuing discussions with the official committee of unsecured creditors” and is hopeful of a consensual resolution. Under the present version of the plan, pre-petition secured creditors would receive 99 percent of the common stock of the reorganized company and up to $300 million in unsecured senior notes. The company did not say what, if anything, would be the return for unsecured creditors’ claims.
Fruit of the Loom filed its Chapter 11 petition on Dec. 29, 1999.