WestPoint Stevens Inc. (OTC Bulletin Board: WSPT) (www.westpointstevens.com) today announced that the U.S. Bankruptcy Court approved a series of the Company's ''first day'' motions, ensuring that WestPoint Stevens can continue regular operations throughout the reorganization proceeding.
''The Court's granting of our first day motions enables us to remain focused on the Company's top priority, delivering superior products and service to our customers, as we work to strengthen WestPoint Stevens' future,'' said M.L. (Chip) Fontenot, President and Chief Operating Officer of WestPoint Stevens Inc.
The Court approved, among other things, motions related to:
* Normal payment of employee salaries, wages and benefits;
* Continued participation in Workers' Compensation Insurance programs;
* Payment to vendors for post-petition delivery of goods and services;
* Payment of certain pre-petition obligations to customers;
* Continued payment of utilities.
The Court also approved under interim order, access to $175 million in debtor-in-possession (“DIP”) financing for use by the Company. The $175 million of interim DIP financing is part of the $300 million commitment from a group of lenders led by Bank of America and Wachovia. The DIP, in addition to normal cash flow will be available to fund ongoing operations.
As previously announced, WestPoint Stevens Inc. and certain of its subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York on June 1, 2003.
WestPoint Stevens Inc. is the nation's premier home fashions consumer products marketing company, with a wide range of bed linens, towels, blankets, comforters and accessories marketed under the well-known brand names GRAND PATRICIAN, PATRICIAN, MARTEX, ATELIER MARTEX, BABY MARTEX, UTICA, STEVENS, LADY PEPPERELL, SEDUCTION, VELLUX and CHATHAM — all registered trademarks owned by WestPoint Stevens Inc. and its subsidiaries — and under licensed brands including RALPH LAUREN HOME, DISNEY HOME, GLYNDA TURLEY and SIMMONS BEAUTYREST. WestPoint Stevens is also a manufacturer of the MARTHA STEWART and JOE BOXER bed and bath lines. WestPoint Stevens can be found on the World Wide Web at www.westpointstevens.com.
CONTACT: Lorraine D. Miller, CFA, Senior Vice President – Investor
Relations of WestPoint Stevens, 404-760-7180