WestPoint Stevens extension request gets objection from R2 Top Hat

By Jeff Pines

Washington, April 19 - WestPoint Stevens Inc. should not get an extension on its exclusivity periods because it has not made any "concrete progress toward formulating or filing a plan of reorganization," in 10 months said R2 Top Hat Ltd.

R2 claims to be the largest of the West Point, Ga.-based textile company's first lien lenders. It said it holds about $190 million, or 38.5% of the first lien claims.

Before WestPoint filed for Chapter 11, it said it could emerge in about six months because it had an "agreement in principle" with three of its largest unsecured bondholders, which would have given them "effective control" of WestPoint, R2 said. But the company filed for its first extension six months ago.

It added that four months ago the company declined to respond to a restructuring proposal made the agent for the lenders because changes in the U.S. textile industry had affected the company's value.

In addition, WestPoint provided lenders with six timelines and has failed to meet any of them, R2 said.

WestPoint filed its request for 90-day extension to submit a plan and a 120-day extension to solicit votes on March 26. It said it needs the extension to complete its five-year business plan.

If the court decides to grant WestPoint an extension, R2 asks that it only be for 30 days.

WestPoint filed for bankruptcy on June 1, 2003. Its Chapter 11 case number is 03-13532.

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