Dan River Files For Chapter 11 Protection
Danville, Va.-based textile manufacturer Dan River Inc. has filed a voluntary petition under
Chapter 11 of the US Bankruptcy Code to facilitate restructuring of the company's debt. The company
also has received a commitment for up to $145 million in new debtor-in-possession financing to help
fund its ongoing operations.
"This restructuring, once fully implemented, should provide Dan River with a much improved balance sheet and a capital structure that is more appropriate for the current economic and market conditions," said Joseph L. Lanier Jr., chairman and CEO. "The strength of our operations and our ability to generate positive cash flow distinguish Dan River from other companies in our industry that have gone through this process and failed. Over the past several months, the company has reduced costs by streamlining its organizational structure, closing plants, reducing its employee base and getting rid of excess inventory. While under court protection, it expects to continue to pay its vendors in full and provide the same quality of goods and services as before, as well as to continue ongoing employee compensation and benefit programs."
Dan River hopes to emerge from Chapter 11 by the end of 2004.