Galey & Lord gets interim approval for $80 million DIP

By Jeff Pines

Washington, Aug. 24 - Galey & Lord Inc. obtained interim approval for its $80 million debtor-in-possession financing through General Electric Capital Corp., according to a Monday order filed with the U.S. Bankruptcy Court for the Northern District of Georgia.

On an interim basis, the company will have access to $42.5 million. An emergency order gave Galey & Lord temporary access to $20 million.

The full $80 million is for a $70 million revolver and a $10 million term loan.

A hearing for final approval is scheduled for Sept. 13 in Atlanta.

Patriarch Partners LLC has signed an asset purchase agreement to acquire Galey & Lord for $188 million. The total includes $45 million of term debt, up to $85 million of other secured debt and up to $58 million in trade, utility, employee benefits and tax liabilities.

If Patriarch wins the court-approved auction for the company, the transaction is expected to close by the end of November.

Galey & Lord filed for bankruptcy on Aug. 19. Its Chapter 11 case number is 04-43098.

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