manufacturer of nylon and polyester textured yarns and associated raw materials, has determined
that the current $137 million carrying value of its investment in its Gastonia, N.C.-based Parkdale
America LLC (PAL) joint venture with Parkdale Mills exceeds its fair value, according to a recent
filing by Unifi with the Securities and Exchange Commission. PAL manufactures man-made and cotton
yarns for the apparel and textile industries and currently operates 12 production facilities mainly
in North Carolina. Because of this excess, Unifi expects to take a pre-tax impairment charge in the
fourth quarter 2007 of between $71 million and $86 million. The company estimates that the new
carrying value will be between $51 million and $66 million.
In addition, Unifi reported it will take a pre-tax bad debt charge of $3.2 million in fourth
quarter 2007 as a result of net receivables worth the same amount owed to it by Fall River,
Mass.-based Quaker Fabrics Corp., which recently announced it will likely liquidate and sell its
Textile World News,” www.
TextileWorld.com, July 3, 2007). Unifi also expects to write down $0.3
million of inventory that it manufactured for Quaker that cannot be sold to other Unifi
July 17, 2007