For an undisclosed price, Austria-based Lenzing AG has transferred its residual shares totaling 39
percent in Lenzing Fiber Corp., Lowland, Tenn., to a private equity group that is the majority
stockholder of the corporation. Going forward, Lenzing Fibers Corp. will be known as Liberty Fibers
Corp.
The transfer and name change will not affect the company’s management team nor its
involvement in the North American rayon market.
Liberty has filed for Chapter 11 bankruptcy protection and secured a new $10 million
revolving line of credit. The company will continue to restructure operations in order to attract
new capital for working capital and future investments. “We firmly believe that this operation can
be returned to profitability,” said Craig Barker, president and CEO, Liberty. “However, to do so
means we have had to make a number of difficult decisions and institute a number of changes from
the way we previously operated.”
January 2004
