A Manhattan bankruptcy court judge on Friday approved the extension of denim mill Galey & Lord Inc.’s debtor-in-possession financing package into the new year, according to court papers.
The move to extend through Feb. 15 the credit package that allows the insolvent company to continue operating follows an extension of the “exclusivity period,” which gives Galey management and owners the sole right to submit a Chapter 11 reorganization plan. Earlier last month, Judge Allen L. Gropper had extended until Nov. 30 Galey’s deadline to submit such a plan and until Feb. 4 the period to solicit acceptances.
Galey filed for bankruptcy in February 2002. In July, the company hired turnaround firm Alvarez & Marsal to work on its reorganization plan. According to filings with the Securities and Exchange Commission, through the nine-month period ended June 28, the company recorded a net loss of $110.3 million on sales of $440 million.