WestPoint Stevens receives temporary extension to exclusive period

New York, March 16 - WestPoint Stevens Inc. obtained a temporary extension to April 7 from March 21 of its exclusive right to solicit acceptances for its plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

A hearing on the motion for a longer extension will be held on April 7.

WestPoint previously asked for an extension to Aug. 31 for its exclusive right.

WestPoint Stevens wants the extension as part of its plans to sell all its assets to an investor group made up of WL Ross & Co. LLC and holders of a majority of the company's senior credit facility, including Contrarian Capital Management and CP Capital Investments.

After the sale is completed, the company said, it will file an amended plan of reorganization and disclosure statement that will determine how WestPoint Stevens' remaining assets will be allocated among its creditors.

The deal is expected to close by July 31. The recapitalized WestPoint Stevens is expected to operate on a standalone basis after the closing.

WestPoint Stevens, the West Point, Ga.-based textile firm, filed for bankruptcy on June 1, 2003. Its Chapter 11 case number is 03-13532.

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