Article: Glenoit files pre-packaged Chapter 11.(Brief Article)

Firm seeks relief from a crushing $95 million in bond debt

NEW YORK -- First swamped by a wave of low-cost Asian imports, then pounded by storms that shut its plants and stunted sales, Glenoit Corp., losing money and deep in debt, has filed a pre-packaged Chapter 11 bankruptcy plan that will wipe the slate clean of $95 million in corporate bonds.

Under the terms of the pre-pack, filed last week in U.S. Bankruptcy Court in Wilmington, DE, roughly 83 percent of Glenoit's bondholders have already bought into the deal and agreed to accept a settlement of 17 cents on the dollar, said Tom O'Gorman, president and ceo.

"The net-net is that we're ...

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