MALDEN MILLS TO RECEIVE $20
MILLION IN FUNDING. Lawrence, MA. November 29, 2001
-- Malden Mills Industries, Inc., the world famous innovative
developer,
finalized a deal with its lenders to fund its operations while
it works to assure its future vitality through a Chapter 11
reorganization. Malden Mills filed for reorganization under
Chapter 11 at court in Worcester, Massachusetts.
The filing was necessitated by
the cost of servicing bank debt. A number of factors
contributed, including a sluggish retail market, the high costs
associated with rebuilding and the closure of the company's
upholstery division after a significant market share loss as a
result of the fire. Malden Mills, a privately-held company,
worked with its lenders and strategic advisors and determined
that a Chapter 11 filing was the best way to reorganize the
company for continuing operations and for building on its unique
position as a recognized brand innovator.
"I commend Malden Mills
and the creditors for reaching this agreement. I'm confident
that the company will overcome its current problems and continue
to make a vital contribution to the local economy and the
nation's security in the future," said Senator Edward
Kennedy. "This agreement is a giant step toward achieving
that important goal."
"This is great news for
anybody who cares about responsible corporate citizenship in
America," said Senator John Kerry. "Aaron Feuerstein
put the survival of his company on the line when he decided to
take care of his workers and rebuild in Lawrence and Methuen. I
appreciate the willingness of the creditors who helped structure
this agreement and am hopeful that this announcement represents
the beginning of a new chapter of growth for the workers at
Malden Mills."
Malden is fully operational and
conducting business as usual. Görlitz Fleece GmbH, a wholly
owned subsidiary of Malden Mills Industries, Inc., based in Görlitz,
Germany, will continue operations unaffected by the U.S. filing.
Customers worldwide will continue to receive product, without
interruption, from both facilities. The U.S. Customer Service
Center in Lawrence, MA and the European Customer Service Center
in Maastricht, The Netherlands, will also continue to operate as
usual and serve customers' needs.
"Malden Mills is in an
enviable position in the marketplace," said Feuerstein,
"and with this infusion of capital, we will continue to
grow the business and retain our preeminent status in the
industry. Our customers, employees, and vendors will all be the
beneficiaries of this reorganization plan which allows us to
focus on our very positive outlook for the future."
For more information, please
contact The Trumbull Group, the official claims agent, at
1-860-687-3194.
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