Patriarch Partners wins bid for Galey & Lord

By Jeff Pines

Washington, Oct. 27 - Patriarch Partners LLC will be the new owner of Galey & Lord Inc., according to a Wednesday court order filed with the U.S. Bankruptcy Court for the Northern District of Georgia.

There were no other bidders for the Atlanta-based textile company.

Patriarch, which manages $4 billion, will pay off all of Galey & Lord's term debt, pay off, replace or assume up to $85 million in secured debt plus outstanding letters of credit, and assume $58 million in employee pay and benefits as well as trade, utility and tax obligations.

But the $40 million cash portion of the purchase price will be the subject of further orders; this order does not authorize the allocation or distribution of the money.

Patriarch Partners and Galey & Lord agreed to an out-of-court acquisition deal in July, but not all of the company's term lenders would give their approval, which was needed to go forward. As a result, Galey & Lord filed for Chapter 11.

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

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