Delta Mills to liquidate fixed assets after lack of bids in asset sale

By Caroline Salls

Pittsburgh, Oct. 31 - Delta Mills, Inc. plans to liquidate its assets after it failed to receive a stalking horse bid for a proposed sale of substantially all of its assets that would have allowed it to continue to operate as a going concern, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the filing, the company will undergo an "orderly run out" of its business, which will allow Delta Mills to continue to finish and sell its inventory.

In addition, the company said it will continue to seek bids for the sale of its fixed assets under one or more sale transactions, including bulk and miscellaneous asset sales.

Delta Mills said it received 11 signed confidentiality agreements from parties interested in purchasing substantially all of its assets, but it received no bids.

A hearing will be held on Nov. 30 to select one or more stalking horse bids for the purchase of all or some of the fixed assets to be liquidated. A sale hearing is scheduled for Dec. 15.

The company said it has received a number of preliminary proposals for the purchase of some or all of the fixed assets.

The miscellaneous sale procedures will apply to sale transactions for purchase prices of $100,000 or less.

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. The Chapter 11 case number is 06-11144.

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