WestPoint Stevens' pre-Chapter 11 bankers support exclusivity extension to Oct. 1

By Jeff Pines

Washington, July 28 - WestPoint Stevens Inc.'s pre-petition bankers support an extension of the company's exclusive right to file a plan of reorganization until Oct 1 and until Nov. 30 to solicit votes for the plan, Bank of America said in a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York. Bank of America is the agent for the pre-Chapter 11 lenders.

Back in March, WestPoint Stevens and Bank of America negotiated a series of milestones the West Point, Ga.-based textile company was supposed to meet in fighting imports and developing a business plan.

On July 16, WestPoint Stevens asked for a 90-day extension. Bank of America said it negotiated a 60-day extension with agreed-upon milestones with the company's attorneys.

For example, a revised business plan presentation is due by Aug. 10. The key components of the presentation will be strategic options selected from the recommendations of the company's consultant, why WestPoint selected those recommendations, key financial assumptions, a timeline and implementation plan and a financial model.

By Sept. 14, WestPoint Stevens is supposed to have a presentation of the company's enterprise value and then by Sept. 28 it is supposed to present a plan term sheet with the company's proposed capital structure and related treatment of creditors under the reorganization plan.

A July 30 hearing is scheduled.

WestPoint Stevens filed for bankruptcy on June 1, 2003. Its Chapter 11 case number is 03-13532.

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