WestPoint Stevens' decade-long Chapter 11 bankruptcy case dismissed

By Caroline Salls

Pittsburgh, Dec. 26 - WestPoint Stevens Inc.'s Chapter 11 bankruptcy case has been dismissed by the U.S. Bankruptcy Court for the Southern District of New York.

According to a Dec. 26 court filing, a final distribution notice has been filed. Each of the WestPoint Stevens debtors will now be dissolved.

As previously reported, the court approved a stipulation in September 2011 that called for the dismissal of the company's bankruptcy case.

The parties to the stipulation include WestPoint Stevens, its first-lien agent, members of a first-lien lender steering committee, several Aretex-WestPoint parties and the company's second-lien agent.

Under the stipulation, the case would be dismissed after the court confirmed that the company had distributed all contents of an excluded assets account, all Canadian proceeds and any proceeds from the sale of any remaining excluded assets to the first-lien lenders and second-lien agent.

According to the stipulation motion, 62.5% of the proceeds from the sale of any excluded assets would be distributed to the second-lien agent for the lenders and 37.5% to the first-lien lenders.

WestPoint Stevens, a West Point, Ga.-based textile company, filed for bankruptcy on June 1, 2003. Its Chapter 11 case number is 03-13532.

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