Burlington Industries sold to WL Ross for $620 million

Chicago, Nov. 11 - Burlington Industries has been acquired by WL Ross & Co. LLC for $620 million. CIT Business Credit, Inc. has provided the new company with an $85 million asset-based line of credit to provide Burlington with the letters of credit and working capital.

Burlington Industries added that unsecured creditors are likely to receive less than the 41.5 cents on the dollar previously estimated. The precise amount will depend on the timing of payments, resolution of Burlington's net working capital at closing, determination of the amount of allowed claims and the value of other assets.

In addition to the sale of Burlington, Lees Carpets has been sold to Mohawk Industries Inc.

"Burlington's debt burden has been reduced from $800 million at the time it filed bankruptcy to $85 million. Therefore the Burlington employees who have remained loyal during the bankruptcy to the new company no longer have to worry about the solvency of their employer," said Wilbur Ross, chairman of both WL Ross and now of Burlington, in a news release.

"Under the new CEO, Joe Gorga, Burlington will combine its strong financial base with the 85th best known brand in the world, technology, and efficient operations to become a consolidator of the industry. The only other ingredient we need is a sensible future trade policy on the part of the Bush Administration and we have every expectation that this will be forthcoming."

Greensboro, N.C.-based Burlington manufactures textiles.

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