WestPoint Stevens To Restructure

WestPoint Stevens To RestructureWestPoint Stevens Inc., West Point, Ga., has reached an agreement
in principle with the holders of the majority of its unsecured debt on terms under which it will
restructure its finances through a Chapter 11 filing with the US Bankruptcy Court for the Southern
District of New York. Under the Chapter 11 process, the company expects to significantly reduce
debt, restore profitability and improve its long-term competitiveness.The agreement calls for the
resignation of Holcombe T. Green Jr. as CEO and the appointment of President and COO M.L. Chip
Fontenot as interim CEO. Also under the agreement, all current common stock will be
extinguished.The company has received commitments for up to $300 million in debtor-in-possession
financing from a group of banks including Bank of America and Wachovia. The funding, combined with
normal cash flow, will enable normal operations to continue during the restructuring.
July 2003