Burlington Files Chapter 11,Hastens New Business ModelIn an effort to implement a new business
model and better serve its customers, Greensboro, N.C.-based Burlington Industries Inc. and certain
of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S.
Bankruptcy Code. The companys new business model focuses on enabling it to introduce fabric
innovations and distinctive products to the market. Burlington is now concentrating on its Lees
Carpets business and on the performance and fabric innovations provided through the proprietary
technology developed by its subsidiary Nano-Tex LLC. As well, it will continue to improve its North
American manufacturing operations and will expand global opportunities through its subsidiary
Burlington WorldWide Ltd., Hong Kong.The petitions filed for reorganization did not include
international operations, joint-venture partnerships, Nano-Tex LLC and Burlington WorldWide Ltd.Our
business model going forward adds worldwide reach to our North American capability to provide
products, services and global solutions to our customers, said George W. Henderson III, chairman
and CEO. We are creating a more flexible and responsive company capable of meeting the diversified
and ever changing needs of our customers.The company received final court approval for $190 million
in debtor-in-possession (DIP) financing underwritten by J.P. Morgan ChaseandCo. The financing is
available to help cover operating expenses during the reorganization process.
January 2002
