Delta Mills files plan of liquidation

By Caroline Salls

Pittsburgh, May 1 - Delta Mills, Inc. filed a plan of liquidation and related disclosure statement Monday with the U.S. Bankruptcy Court for the District of Delaware.

Following its failure to obtain bids in the proposed sale of substantially all of its assets, Delta Mills said it decided to wind down its business and sell its inventory.

The company said it expects to have between $6 million and $8.5 million of cash on hand to fund plan distributions, assuming a June 30 plan effective date. The company also will attempt to liquidate its remaining assets.

Treatment of creditors under the plan will include:

• Holders of administrative claims will be paid in full in cash;

• Holders of GMAC debtor-in-possession facility claims will be paid in full in cash;

• Holders of general secured claims will receive either payment in full in cash or return of the collateral securing the claim, at the company's option;

• Holders of priority claims will be paid in full in cash;

• Holders of reclamation claims will either receive return of the goods that are subject of the claim, cash, or a combination of goods and cash;

• Holders of convenience claims will recover about 18% in cash;

• Holders of general unsecured claims will receive their share of the company's assets after all administrative, priority, GMAC, secured, reclamation and convenience claims are paid in full; and

• Equity interests will be cancelled, and holders will receive no distribution under the plan.

Delta Mills is the operating subsidiary of Delta Woodside, Inc., a Greenville, S.C.-based company that manufactures and sells textile products for the apparel industry. Delta Mills filed for bankruptcy on Oct. 13, 2006. The Chapter 11 case number is 06-11144.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.