HICKORY, N.C., Dec. 15 /PRNewswire/ — Worldtex Inc. (OTC Bulletin Board: WTXI) said that it had
not made the$8.4 million interest payment due today on its 9-5/8 % Senior Notes.The Company said
that it will take advantage of the 30-day grace periodpermitted under the indenture governing the
Senior Notes to continuediscussions with an unofficial committee of creditors representing nearly
two-thirds of the principal amount of the Senior Notes regarding a potentialrestructuring of
Worldtex’s capitalization. Barry D. Setzer, Chairman and Chief Executive Officer of Worldtex,
said:”We are very pleased with the current status of negotiations, as everyone hasdemonstrated a
desire for a quick resolution of this financial restructuringeffort. We are optimistic that the
Company and the committee will be able toagree in the very near-term to a consensual transaction
that will provide anappropriate capital structure for Worldtex without interrupting the
day-to-daybusiness of the Company. We appreciate the continued support of ouremployees, customers,
vendors, bank lenders and noteholders.” Rob Hamwee, a Managing Director of GSC Partners, the
largest holder ofWorldtex’s 9-5/8 % Senior Notes and a member of the unofficial committee,added:
“The committee is enthusiastic about the progress that we have made inour discussions with the
Company regarding the proposed restructuring ofWorldtex’s capitalization, and we believe the
prospects to be good for aprompt agreement and successful implementation of a restructuring plan.”
Statements regarding the expected financial restructuring, as well as anyother statements that are
not historical facts in this release, are forward-looking statements that involve certain risks,
uncertainties and assumptions.These include but are not limited to delays in negotiations,
inability toreach final agreement, failure of the satisfaction of conditions, a furtherdecline in
the Company’s financial results and other factors detailed in theCompany’s most recent Form 10-K
and other filings with the Securities andExchange Commission (SEC), which are available free of
charge on the SEC’swebsite at http://www.sec.gov. Should one or more of these risks or
uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actual resultsmay vary
materially from those indicated. Worldtex is a market leader in the covered elastic yarn and narrow
elasticfabric markets throughout the Americas and Europe. Worldtex supplies a broadrange of
component products to the apparel, textile, home furnishings andspecialty end-use markets.SOURCE
Worldtex, Inc.
Copyright 2000
PR Newswire
