Article: GLENOIT FILES CHAPTER 11.(bankruptcy petition)(Brief Article)

NEW YORK -- In a move to slash its debt load by about $80 million, knit fabrics producer Glenoit Corp. filed a prepackaged Chapter 11 bankruptcy petition this week in Wilmington, Del.

On Wednesday, it filed a reorganization plan to lower its subordinated debt load to $15 million. That filing came the day after it sought court protection.

In a phone interview, Thomas O' Gorman, president and chief executive officer of the New York-based company, said the firm is up-to-date with all its trade creditors and plans to continue business as usual.

"We are completely current with all our vendors," he said. "Our plan of reorganization calls for ...

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