WestPoint Stevens noteholders to receive $175 million in new notes, stock, rights

By Carlise Newman

Chicago, June 5 - WestPoint Stevens Inc. said noteholders will receive new notes and 30% of its common stock plus rights to subscribe to further notes and the remaining stock under its proposed restructuring agreement.

Under the terms of the restructuring, holders of $525 million 7 7/8% senior notes due 2005 will receive $175 million in 8% unsecured subordinated notes due 2009. Holders of $475 million 7 7/8% senior notes due 2008 will receive $175 million in 8% unsecured notes due 2012.

Both are contractually subordinated to the new senior credit facility and new senior secured notes.

Noteholders will also receive 30% of the new common stock of the reorganized company.

Noteholders also have a right to subscribe in cash for $166.7 million of 8% senior secured notes due 2009 secured by a second priority lien on all of the company's assets, redeemable at par by WestPoint at any time; and 70% of the new common stock of the company.

Holders who exercise their rights will be entitled to receive a payment from WestPoint equal to 1% of the amount of senior secured notes for which they subscribe.

The company's senior credit facility will be replaced by an exit facility.

Terms for unsecured creditors has not been determined yet, according to a document filed with the Securities and Exchange Commission.

Holders of old common stock will receive nothing.

WestPoint Stevens is a WestPoint, Ga.-based home fashions manufacturer.

Details at:

http://www.sec.gov/Archives/edgar/data/852952/000090951803000367/jd6-5ex99_3.txt

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