Worldtex Files Restructuring PlanHickory, N.C.-based Worldtex Inc. has filed a petition for relief in the Bankruptcy Court for the District of Delaware under Chapter 11 of the Bankruptcy Code for the purpose of restructuring its capitalization. The restructuring has been prenegotiated with an informal committee of holders of approximately 64 percent of the companys 9-5/8-percent Senior Notes. The filing also includes a reorganization plan and proposed disclosure statement.The restructuring will result in a substantial reduction of company debt. Our company would emerge under this restructuring plan with an improved capital structure and the financial flexibility to resume investing in our business, said Barry D. Setzer, chairman. We appreciate the support of our employees, customers, vendors, bank lenders and noteholders during this challenging time. With their continued support, we expect Worldtex to emerge as a stronger competitor well-positioned for financial success.Consummation of the restructuring plan is subject to effectiveness of the Chapter 11 plan, which requires arranging a new credit facility to be available upon emergence from Chapter 11 and Bankruptcy Court approval of the plan and the disclosure statement describing the plan.May 2001
