Malden Mills emerges from bankruptcy

By Carlise Newman

Chicago, Oct. 17 - Malden Mills Industries Inc. said it has emerged from Chapter 11 bankruptcy protection.

The reorganized company is emerging from bankruptcy intact with 1,200 employees based in Lawrence, Mass., Methuen, Mass. and Hudson, N.H.

Various secured and unsecured creditors have received a majority of the reorganized company's stock and a seven member board with six new directors has been appointed.

"Malden Mills is emerging from Chapter 11 a transformed company," said acting chief operating officer and chief financial officer David Orlofsky of Kroll Zolfo Cooper in a news release. "Two years ago Malden Mills' sales were declining and profits were shrinking. Today I am pleased to say that the company has successfully turned the corner. Sales are growing and the company has diversified the Polartec business into new markets.

"Additionally, the company has reduced its debt load from more than $170 million prior to Chapter 11 to less than $80 million."

The company is in the final stages of selecting a permanent CEO and hopes to have this process completed before the end of the calendar year.

The Lawrence, Mass.-based textile company filed for Chapter 11 protection on Nov. 29, 2001.

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