Avondale fails to receive consents to end SEC filing

New York, June 16 - Avondale Mills, Inc. said it failed to receive enough consents from holders of its 10¼% senior subordinated notes due 2013 and its senior floating-rate notes due 2012 to end the requirement for it to file annual reports and other documents with the Securities and Exchange Commission.

The company said it will not extend the solicitation and, because it did not receive approval, will not pay consent fees.

Avondale Mills announced the solicitation on May 25, saying that instead of filing with the SEC it intended to provide essentially the same information directly to noteholders, including holding quarterly conference calls.

As part of the amendments to the note indentures, the Monroe, Ga., textile manufacturer was proposing to pay an additional 0.25 basis points of interest on March 1 of each year.

The company was offering a consent fee of $2.50 per $1,000 principal amount to holders who deliver consents.

The solicitation was subject to holders of at least a majority of the notes delivering consents.

Expiration was 5 p.m. ET on June 15.

Avondale Mills was seeking to make the change in order to save the "burden and expense" of filing with the SEC and complying with section 404 of the Sarbanes-Oxley Act of 2002.

MacKenzie Partners, Inc. is the information agent (800 322-2885 or 212 929-5500, attention Jeanne Carr).

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