Burlington Industries receives "several" purchase proposals

Chicago, July 21 - Burlington Industries Inc. said it has received several proposals to purchase the company and added that it is assessing the proposals.

The company did not disclose further information about the proposals and said it does not expect to have any additional comment unless it enters into a sale agreement or terminates the process.

The Greensboro, N.C.-based textile company initiated a process to solicit proposals from bidders for the sale of the company on March 6, with a deadline for bids on July 10 and the auction July 21. Burlington said then its objective was to emerge from Chapter 11 reorganization by summer.

The company hired Miller Buckfire Lewis & Co. LLC, an investment banking firm, to oversee the bid solicitation and auction process.

On Feb. 11, Berkshire Hathaway, owned by Warren Buffett, said it had entered into a definitive agreement to acquire Burlington Industries. Under that plan, Burlington's secured creditors would be paid in full and its pre-petition unsecured creditors would receive cash and certain other assets estimated to be 34-35% of their claims. All shares of Burlington's common stock would be canceled with no payment. Burlington would emerge with no debt, other than ordinary course liabilities, having repaid the majority of the $1.1 billion of liabilities it had prior to its bankruptcy filing, and eliminating the balance through the bankruptcy process.

On Feb. 28, Berkshire Hathaway terminated the agreement following a court decision to consider procedures to solicit alternatives to the Berkshire transaction. The bankruptcy court indicated it approved the procedures generally but disapproved the break-up fee and certain other conditions required by Berkshire to proceed as a "stalking horse" in the alternative bid process.

While the secured bank lenders were in support, the unsecured creditors opposed granting a break-up fee.

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