Globe Manufacturing Files Involuntary Chapter 11

Globe Manufacturing, Fall River, Mass., announced that an involuntary petition for relief under
Chapter 11 of the United States Bankruptcy Code was filed in the United States Bankruptcy Court for
the Eastern District of Massachusetts by a group of holders of the companys 10-percent Senior
Subordinated Notes due August 2008.The company said that, for the last several months, it has been
in discussions with such holders, as well as its other creditor groups, regarding a restructuring
of its debt. Discussions with bank lenders are ongoing, and the company continues to explore a
number of alternatives, including the potential sale of the company and an operational
restructuring.In light of the recent filing, the company has decided to reduce its Fall River
workforce by approximately 130 persons. The staffing cuts will be made primarily from the
dry-spinning and reaction-spinning operations and include both manufacturing and administrative
February 2001