WestPoint Stevens' steering committee calls case dismissal request premature

By Caroline Salls

Pittsburgh, Sept. 8 - WestPoint Stevens Inc.'s first-lien lender steering committee objected to the company's proposed Chapter 11 case dismissal in a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York, saying the request should wait until an appeals court rules on the company's asset sale.

The steering committee is made up of Contrarian Funds, LLC; Satellite Senior Income Fund, LLC; CP Capital Investments, LLC; Wayland Distressed Opportunities Fund I-B, LLC and Wayland Distressed Opportunities Fund I-C, LLC.

The steering committee said the dismissal is premature because numerous legal issues remain unresolved in the case and their outcome could affect the distribution of the estate's remaining assets.

Specifically, the steering committee said the request is premature because the district court has not ruled on the committee's appeal of the bankruptcy court's approval of the sale of WestPoint's assets.

"If the district court reverses the sale order, the steering committee may have secured claims collateralized by a substantial portion of the estate's remaining assets," the committee said in the objection.

According to the objection, a decision on the appeal is expected by the end of October, and the committee requested a ruling on case dismissal be deferred until then.

A hearing on the case dismissal is scheduled for Tuesday.

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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