MALDEN MILLS TO RECEIVE $20
MILLION IN FUNDING. Lawrence, MA. November 29, 2001
-- Malden Mills Industries, Inc. 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.
"This reorganization
allows Malden Mills to emerge from the challenges we have faced
since the catastrophic fire that nearly destroyed our company in
late 1995," said President and CEO Aaron Feuerstein.
"Today begins a new chapter in Malden Mills' 95 year
history as a stronger, more highly focused and profitable
company. Our internationally renowned brand name, our pioneering
research and development arm, coupled with our strong customer
base and our dedicated workforce, will keep Malden Mills at the
forefront of the industry for many years to come."
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.
Malden Mills' patented
manufacturing processes create high-tech, branded Polartec®
fabrics for all outdoor activities -- from rock climbing to
kayaking to U.S. military maneuvers in the mountains of
Afghanistan. The company has received tremendous support from
their customers worldwide. 'Made in the United States of
America' and based in Lawrence, Massachusetts, the Mill is the
sole source for Polartec® fabrics used for cold weather gear
for the U.S. Army, Marine Corps, and Special Operations Command.
"I am pleased that Malden
Mills will continue to supply not only our Armed Forces with
Polartec but the greater Lawrence community with good jobs.
Malden Mills is providing our military, particularly those
soldiers and Marines who are stationed in and around
Afghanistan, with the best possible cold weather gear. I am
confident today's announcement will ensure that our men and
women in uniform will continue to receive this important
equipment. Moreover, it is clear that Malden Mills will continue
to play an important role in the economy of Lawrence, the
Merrimack Valley, and Massachusetts," said Congressman
Marty Meehan, a senior member of the House Armed Services
Committee.
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 Trumbull Service, the official claims agent, at 1-860-687-3194.
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