FTL WANTS COURT TO ACT
NEW YORK — Fruit of the Loom Ltd. is seeking bankruptcy court permission to take legal action against its former chief executive, William Farley, in connection with a $65 million company-guaranteed loan to Farley.
FTL on Jan. 28 began making payments to lenders under the loan agreements, but claims that several defaults exist under its loan arrangement with Farley.
The loan to Farley, who resigned last August, was made in March 1999.
FTL also will ask the court for approval to hire Herbert Mines Associates and Kenzer Corp. to conduct a search to find a new ceo and chief financial officer, and Christie’s Inc. to dispose of modern art displayed at its Rockefeller Center corporate offices.