Dan River Emerges From Chapter 11
Dan River Inc., Danville, Va., emerged from Chapter 11 reorganization February 14, less than 11 months after filing for bankruptcy protection. The home fashions and apparel textiles manufacturer has received financing in the amount of $120 million under a senior secured financing facility syndicated by Abelco Finance, and an additional $20 million secured term loan from holders of its pre-petition bond obligations. Outstanding shares of common stock have been cancelled, and new common stock representing approximately $225 million in unsecured obligations has been issued to certain post-emergence lenders and unsecured pre-petition creditors. Henceforth, Dan River will cease to operate as a public reporting company.
Barry F. Shea, President and CEO, Dan River Inc.
"This is a great day for the new Dan River," said Barry F. Shea, the company's new president and CEO. "The company emerges from Chapter 11 with a renewed vitality and an unwavering commitment to create value-added products that will draw the attention of consumers and will allow our customers to differentiate themselves in the competitive retail environment in which they participate."
Joseph L. Lanier Jr., formerly chairman and CEO, now serves as as non-executive chairman of the
board. Scott D. Batson has replaced Shea as chief financial officer.