Textile giant Burlington Industries
Inc on Friday announced it had accepted a $608
million offer from investment firm WL Ross &
Co as the opening bid in an auction due to be
held today.
The North Carolina-based company, which makes
soft goods for apparel and interior furnishings,
said in a statement rival bidders at an auction
in New York today will at least have to top
that offer if they want to take control.
Last week, the firm said it had received "several
proposals in connection with the sales process,"
but did not give any further details or name
any of the suitors.
WL Ross' bid hinges on the sale of Burlington's
Lee's Carpet unit to Mohawk Industries Inc,
with the potential deal expected to close in
October.
Burlington, which filed for Chapter 11 almost
two years ago, estimates that distributions
to unsecured creditors will be 40 per cent of
allowed unsecured claims and that secured creditors
will be repaid in full.
Chairman and CEO, George Henderson III, said:
"We are pleased that the bidding process
is coming to a conclusion and we believe it
will enable us to maximise the value of the
company and produce the best results for our
customers, employees, suppliers and creditors."
Wilbur Ross, Chairman of WL Ross & Co LLC,
added: "Lees will benefit from Mohawk's
financial strength and business synergies. Burlington's
other operations also will be deleveraged and
as privately owned businesses will function
even more efficiently and responsively to meet
the needs of their customers."
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