Cone Mills creditors' committee objects to bondholders' request for delay

By Jeff Pines

Washington, Feb. 18 - If Cone Mills' bondholders' committee thinks the company is worth more than the $46 million WL Ross & Co. is willing to pay for it, then its members should be prepared to post a bond to insure the value of the company while it appeals, the official unsecured creditors' committee said.

In a Feb. 17 motion filed with the U.S. Bankruptcy Court for the District of Delaware, the creditors' committee asked the court to ignore the ad hoc bondholders committee's request for a delay in the sale of the company's assets, or for the court to reconsider its decision.

The bondholders filed their motion on Feb. 12.

The unsecured creditors' committee argued the bondholders' motion fails to address the criteria required under bankruptcy law for a delay or a stay. In fact, it described the bondholders' motion as "simply rehashing previously failed arguments and offering innuendo in an attempt to convince this court to reverse its well-reasoned course."

The committee said it only supported the sale because the bondholders' committee and the equity committee lacked "concrete proposals" as an alternative.

The Greensboro, N.C.-based denim manufacturer filed for Chapter 11 on Sept. 24.

A hearing is scheduled for Feb. 19.

The case number is 03-12944.

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