ITHACA FILES CHAPTER 11

NEW YORK — Ithaca Industries Inc. Wednesday filed for Chapter 11 bankruptcy court protection in Delaware.
The Wilkesboro, N.C.-based manufacturer of private label underwear and T-shirt products said in court papers that it had reached a debtor-in-possession financing agreement with its existing lender prior to the filing.
Seeking to focus on its men’s private label outerwear and underwear and women’s innerwear, Ithaca sold its hosiery division in April 1999 to the division’s management team.
The bankrupt firm listed total liabilities of $75.3 million and total assets of $83 million.
Creditors include: Foothill Capital Corp., Los Angeles, $15 million in notes; TNS Mills Inc., Greenville, S.C., $1.5 million; Alexander Fabrics Inc., Burling-ton, N.C., $657,912; Network Systems Inc., Greensboro, $281,090; CMD Systems Inc., Char-lotte, N.C., $212,732, and Avondale Mills Inc., Atlanta, $177,129.
According to the filing, the firm has sold the equipment at its Graham, N.C., plant. A sale of the building is pending. Two inactive facilities were also sold in Cairo, Ga., and Robersonville, N.C. The leased space at its Plano, Tex., site is being subleased.