News:
WestPoint Stevens Receives Court Approval for Accelerated Bidding and Notice Procedures for a Sale of the Company
Friday April 22, 4:16 pm ET
- Extends Debtor-in-Possession Financing
WEST POINT, Ga., April 22 /PRNewswire-FirstCall/ -- WestPoint Stevens Inc. (OTC Bulletin Board: WSPQE - News) announced today that the U.S. Bankruptcy Court approved modified bidding and notice procedures for the sale of substantially all of the Company's assets. As a result of the ruling of the U.S. Bankruptcy Court on April 7, 2005, with respect to proposed bidding procedures, the previously announced asset purchase agreement with a group of investors consisting of WL Ross & Co. LLC and holders of a majority of the Company's Senior Credit Facility was terminated. The sale process will now be conducted without a stalking horse bid.
A deadline of 12:00 noon Eastern Time on June 10, 2005 has been established for the submission of bids. Interested parties should contact the Company's financial advisors, Rothschild Inc. (Attn: Neil Augustine, 212-403- 3500) or legal advisors, Weil, Gotshal & Manges LLP (Attn: Michael Walsh, Esq. or John Rapisardi, Esq., 212-310-8000).
WestPoint Stevens also announced today that is has amended the maturity of its existing debtor-in-possession financing, extending it to the earlier of December 2, 2005 or the consummation of a sale of the Company. The amendment will allow sufficient time for the Company to complete the sale process. The amendment, which also modifies other covenants and financial reporting requirements, is subject to approval of the Bankruptcy Court and has been included in a Form 8-K filed with the SEC which can be accessed at the Company's website, www.westpointstevens.com under the "For Investors" tab.
WestPoint Stevens Inc. is the nation's premier home fashions consumer products 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 CHARISMA, RALPH LAUREN HOME, DISNEY HOME and GLYNDA TURLEY. WestPoint Stevens can be found on the World Wide Web at www.westpointstevens.com .
Safe Harbor Statement: Except for historical information contained herein, certain matters set forth in this press release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties may be attributable to important factors that include but are not limited to the following: Product margins may vary from those projected; Raw material prices may vary from those assumed; Additional reserves may be required for bad debts, returns, allowances, governmental compliance costs, or litigation; There may be changes in the performance of financial markets or fluctuations in foreign currency exchange rates; Unanticipated natural disasters could have a material impact upon results of operations; There may be changes in the general economic conditions that affect customer practices or consumer spending; Competition for retail and wholesale customers, pricing and transportation of products may vary from time to time due to seasonal variations or otherwise; Customer preferences for our products can be affected by competition, or general market demand for domestic or imported goods or the quantity, quality, price or delivery time of such goods; There could be an unanticipated loss of a material customer or a material license; The availability and price of raw materials could be affected by weather, disease, energy costs or other factors; The future results of operations may be adversely affected by factors relating to the Chapter 11 proceedings. The information contained in this release is as of April 22, 2005. WestPoint Stevens assumes no obligation to update publicly any forward-looking statements, contained in this document as a result of new information or future events or developments.
Contact: Lorraine D. Miller, CFA
Senior Vice President
Finance and External Communications
404.378.0491
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Source: WestPoint Stevens
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